9911796707
TMI Blog2021 (8) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... Dehradun made on 29/05/2015 u/s 143 (3)/144C of The Income Tax Act was partly allowed. 2. The assessee has raised the following grounds of appeal for Assessment Year 2012-13:- "GROUND NO. 1 On the facts and circumstances of the case, the Ld. CIT(A) erred in disallowing an amount of INR 200,505,600 u/s 40(a)(ia) of the Act on the premise of the criterions laid down by the proviso to section 201(1) being not met by the appellant. In doing so, the Ld. CIT(A) did not take cognizance of the fact that in the Assessment Order passed, the AO categorically mentioned the submission of Form 26A as per rule 31ACB of the Income-tax Rules by the appellant. GROUND NO. 2 On the facts and circumstances of the case, the Ld. CIT(A)/AO has erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 201(1) inserted with effect from 1 July 2012. He rejected the claim of the assessee that the proviso inserted with effect from 1/7/2012 is retrospective in nature. He therefore made disallowance of Rs. 200,505,600/- on account of payment made to the contracts for services on which no tax was deducted. Learned AO further held that assessee has not filed the revised return of income and therefore the claim of the assessee is also not entertained in view of the decision of the honourable Supreme Court in 284 ITR 323. Assessee has also debited Rs. 38,519,708 as cost of material. Assessee was asked to justify claim of the expenses as according to the AO negligible business activity has been carried out and the major business was carried out in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come in the return of income of the payee and the payee has paid the due tax on the income declared in its return of income. He further noted that assessee has also failed to furnish a certificate to this effect from an 'accountant' in the prescribed proforma. In view of this, he confirmed the disallowance u/s 40(a) (ia) of the act. With respect to the cost of material claimed by the assessee, he held that the cost of material is 9% of the revenue reported and appellant could not produce any evidence for allowability of the above claim. He further held that the disallowance under that head was also for the reason of nonproduction of the relevant purchase bills. He held that assessee has not produced anything either before the assessing offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature. However to get the benefit of the above proviso certain particulars are required to be furnished before the AO in a particular manner. Though assessee has furnished certain information before AO however they were not in the prescribed format and not accompanied with the certificate of the accountant showing that income has been included by payees in return of income. So it was rejected. Learned AO further held that there was no claim made by the assessee by filing revised return and therefore in view of the decision of the honourable Supreme Court it cannot be entertained. We find that as the honourable Delhi High Court has held that the above proviso inserted u/s 201 (1) is retrospective in nature the assessee must be granted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to Rs. 38,519,318/- as assessee failed to submit any information before the learned assessing officer as well as before the learned CIT - A. Even before us, no such information is furnished. The lower authorities noted that assessee has merely stated that assessee has reported revenue from operation during the year and the cost of material consumed debited to the profit and loss account of the above sum which is only around 9% of the total revenue earned by the appellant and therefore the above disallowance cannot be made. Assessee has also submitted that the earning of the revenue shown by the assessee cannot be earned without consumption of any material. We find that if assessee would like to claim any expenditure as a deduction, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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