IN THE INCOME-TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER &

SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.4279/MUM/2025 (A.Y. 2021-22)

Income Tax Officer (TDS) – v/s. Sashwat Energy Private

2(2)(1)

बनाम Limited

3rd Floor, MTNL Building, 10th Floor, Universal Cumballa Hill, Mumbai – Majestic Lokhande Marg, 400 026, Maharashtra Chembur West, Mumbai –

400 043, Maharashtra स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: MUMS95080G Appellant/अपीलार्थी .. Respondent/प्रतिवादी

प्रत्याक्षेपसं./C.O. No.273/MUM/2025 (Arising out of ITA No. 4279/MUM/2025)

(A.Y. 2021-22)

Sashwat Energy Private v/s. Income Tax Officer (TDS) –

Limited बनाम

2(2)(1), 3^rd Floor, MTNL

10^th Floor, Universal Majestic Building, Cumballa Hill, Lokhande Marg, Chembur Mumbai – 400 026, West, Mumbai – 400 043, Maharashtra Maharashtra स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: MUMS95080G Appellant/अपीलाथी .. Respondent/

Assessee by : Ms Kinjal Bhuta,AR Revenue by: Shri Surendra Mohan, (Sr. DR)

Date of Hearing 10.12.2025 Date of Pronouncement 13.01.2026 Sashwat Energy Private Limited आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :-

The above captioned appeal has beenpreferred by theRevenue and Cross appeal by the assessee against the order passed by the Learned Commissioner of Income-tax, Appeal, Addl./JCIT(A), Bhopal [hereinafter referred to as “CIT(A)”] pertaining to the order passed u/s. 201(1) and 201(1A) of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for the Assessment Year [A.Y.] 2021-22.

2. The grounds of appeal are as under:-

ITA 4279/MUM/2025

1. Whether on the facts and in the circumstances of the case and in law, the Ld. Addl. CIT(A) is justified in holding that the assessee is not a defaulter for non-deposit of TDS when based on the documents filed by the assessee himself the AO held that it has deducted the TDS of Rs. 1,48,96,640/- on the interest of Rs.32,38,40,000/- paid to M/s. Shapoorji Pallonji and Co Pvt. Ltd. @4.60% based on LDC obtained by the deductee.

2. Whether on the facts and in the circumstances of the case and in law, the ld. Addl. CIT(A) is justified in holding that the assessee is not a defaulter as the payment of interest has not been made to the deductee and the assessee did not have any money to pay the TDS amount.

3. Whether on the facts and in the circumstances of the case and in law, the Ld. Addl. CIT(A) is justified in holding that the assessee is not a defaulter as the deductee has offered the interest income for tax and paid the due taxes thereon ignoring the factual finding that the assessee has deducted the tax as per its books of accounts but not deposited the same.

Sashwat Energy Private Limited

4. Whether on the facts and in the circumstances of the case and in law, the Ld. Addl. CIT(A) is justified in not appreciating the findings made by the AO in the order u/s 201/201(1A) of the I.T. Act, 1961 regarding assessee's default of non-deposit of TDS as the disallowance u/s. 40(a)(ia) has been made by the assessee for the same in its ITR and the TDS payable entry in the balance sheet has increased by the amount of TDS deducted during the year.

3. The assessee company provides for undertaking Engineering Procurement and Construction (EPC) contracts for solar power plants and other electrical and engineering works. In this case, survey action u/s 133A(2A) of the Actwas conducted for verification of proper TDS compliance by the assessee/deductor which had incurred expenditure like Interest expense on loan and consultancy fees/professional fee/Audit fee, etc. on which tax was deductible at source under the TDS provisions of sections like 194A,/194J of the Act during the year under consideration. However, it was found that the assessee failed to comply with the TDS provisions u/s 201(1) of Chapter-XVII-B of the Act. Further, the assessee had been claiming deductions u/s 40a(ia) in its annual ITRs. The assessee had not been furnishing its quarter-wise TDS statement as per subsection (3) of section 200 of Chapter-XV