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2013 (11) TMI 311 - AT - Income TaxDisallowance u/s 40(a)(ia) - Non submission of Form 15H/15G u/s 197A with the office of CIT by the assessee within prescribed limit – Held that:- Reliance has been placed on the decision of Hon’ble Gujarat High Court in case of CIT vs. Valibhai Khanbhai Mankad [2012 (12) TMI 413 - GUJARAT HIGH COURT] - When on the basis of the record it is not disputed that the requirements of further proviso were fulfilled, the assesses was not required to make any deduction at source on the payments made to the sub-contractors. If that be our conclusion, application of section 40(a)(ia) would not arise since, as already noticed, section 40(a)(ia) would apply when there is a requirement of deduction of tax at source and such requirement is either not fulfilled or having deducted tax at source is not deposited within prescribed time - Non deposition / submission of Form 15H / 15G is not a ground to disallow expense u/s 40(a)(ia) – Decided in favor of Assessee. Disallowance of brokerage expenditure of Rs. 2,75,000/- - Held that:- Appellant had submitted the all details of recipients with address and PAN to the A.O. during the course of assessment proceeding. He had deducted the TDS on brokerage. The working of brokerage has been provided - Thus, the liability of brokerage has crystallized on the basis of sale made by the assessee. Thus, it is not a simple provision but calculated on the basis of sale made by the assessee – Decided in favor of Assessee.
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