ITAT Remands Rs 22.98 Lakh TDS Demand Dispute, Directs Examination of IBC Moratorium Claim After Verification of Supporting Documents:

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has restored the TDS dispute of TMW Fintech Private Limited to the jurisdictional Assessing Officer (AO) for a fresh examination of the company’s claim on moratorium under the Insolvency and Bankruptcy Code (IBC). The dispute involves Assessment Year 2019-20 and tax demand of Rs 22,98,715, TDS dues of Rs 12,70,008 and interest of Rs 10,28,707.

The above demand was raised by the Assessing Officer by an order passed under section 201(1) and 201(1A) of the Income Tax Act, 1961 dated 31.12.2024. Subsequently, the Commissioner of Income Tax (Appeals) rejected the company’s plea concerning the IBC moratorium, stating that supporting documentary evidence had not been furnished. The demand was therefore upheld at the first appellate stage.

TMW Fintech, aggrieved by the decision, approached the ITAT. The company argued that it would produce the necessary documents to support its claim during the course of the proceedings. Considering the additional written submissions and the facts of the case, the Tribunal noted that the earlier rejection was due to the lack of supporting evidence which the company had undertaken to provide.

The ITAT remanded the matter to the jurisdictional Assessing Officer for fresh adjudication as per law. Having considered the relevant documents and after providing the assessee a reasonable opportunity to present his case, the AO has been directed to examine the applicability and effect of the IBC moratorium on the company’s liability under Sections 201(1) and 201(1A).

The Tribunal also ordered TMW Fintech to submit the necessary documents and written submissions without undue delay and cooperate with the proceedings.

Accordingly, the ITAT allowed the appeal for statistical purposes.