Scrutiny for verification of Interest Expenses

Last updated: 10 August 2021

Court :
INCOME TAX APPELLATE TRIBUNAL HYDERABAD

Brief :
This is assessee's appeal for the Assessment Year 2015-16 against the order of Commissioner of Income Tax (Appeals)-6, Hyderabad dt.17.10.2019

Citation :
ITA No.235/Hyd/2020

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD ‘ B ‘ BENCH, HYDERABAD.
BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND
SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER
(Through Virtual Hearing)
ITA No.235/Hyd/2020
(Asst. Year : 2015-16)

M/s. GSRVPL – RVNIPL – JV,
Hyderabad.
PAN AABAG 8487D

Appellant.

Income Tax Officer,
Ward 6(3), Hyderabad.

Respondent

Appellant By : Shri K. C.Devdas.
Respondent By : Shri A.P. Babu (D.R.)
Date of Hearing : 19.07.2021.
Date of Pronouncement : 26.07.2021.
O R D E R

This is assessee's appeal for the Assessment Year 2015-16 against the order of Commissioner of Income Tax (Appeals)-6, Hyderabad dt.17.10.2019.

2. At the outset, it is noticed that there is a delay of 70 days in filing of this appeal and the assessee has filed an application requesting condonation of delay.

3. The brief facts of the case are that the assessee is an Association of Persons (AOP) and filed its Return of Income for Assessment Year 2015-16 on 26.09.2015 admitting NIL income. The return was initially processed u/s.143(1) of the Income Tax Act, 1961 ('the Act'). Subsequently, it was selected for complete scrutiny through CASS for verification of –
i) interest expenses;
ii) certificate for nil or lower rate of TDS;
iii) contract receipts/Fees Mismatch;
iv) sales turnover mismatch;

v) low income and high loans / advance / investments;
vi) refund claim; and
vii) Tax Credit mismatch.

4. In view of the above, it is requested that the Hon'ble Tribunal may consider setting aside the file to the AO to verify the claim of the assessee and give credit for TDS on the above three advances in the year when such advance is recovered from the gross contract receipts that is offered to tax or refunded back to Tata in accordance with Rule 37BA(3) of the Income Tax Rules 1962.”

5. In the result, the assessee's appeal is allowed for statistical purposes.
Order pronounced in the open court on 26th July, 2021.

Please find attached the enclosed file for the full judgement