Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 400 - AT - Income TaxLabour/Carting Charges disallowed u/s 40(a)(ia) – Failure to deduct TDS u/s 194C – Held that:- Out of the total amount, Assessee had deposited the TDS on 23.04.2007 which though was beyond the prescribed date but was before the filing of return of income - in the case of Commissioner of Income Tax-I Versus Royal Builders [2014 (1) TMI 136 - GUJARAT HIGH COURT] it has been held that when Assessee has deducted tax at source on or before due dates specified in Section 139(1), provisions of Section 40(a)(ia) would not apply - the issue where the Assessee has not deducted TDS but the payee has paid the taxes needs to be re-examined by the AO – thus, the matter is remitted back to the AO for Examination – Decided partly in favour of assessee. JCB rent disallowed – Held that:- Section 40(a)(ia) cannot be seen as intended to be a penal provision to punish the lapses of non deduction of tax at source from payments for expenditure- particularly when the recipients have taken into account income embedded in the payments, paid due taxes and filed income tax returns in accordance with the law - assessee has not placed any material on record to demonstrate that the payee has offered the amounts received from Assessee as its income and has paid taxes on the same – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of assessee.
|