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2015 (1) TMI 688 - ITAT PUNEDisallowance u/s. 40(a)(ia) - non deduction of TDS on lorry hire charges - CIT(A) deleted the disallowance holding that TDS disallowance applies only to amounts ‘payable’ as on 31st March and not to amounts already paid during the year - Held that:- The key words used in Section 40(a)(ia), according to us, are "on which tax is deductible at source under Chapter XVII -B". If the question is "which expenses are sought to be disallowed?" The answer is bound to be "those expenses on which tax is deductible at source under Chapter XVII -B. Once this is realized nothing turns on the basis of the fact that the legislature used the word 'payable' and not 'paid or credited. the legislature provided that the amounts, on which tax is deductible at source under Chapter XVII-B payable on account of interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services or to a contractor or sub-contractor shall not be deducted in computing the income of an assessee in case he has not deduced, or after deduction has not paid within the specified time. The language used by the legislature in the finally enacted law is clear and unambiguous whereas the language used in the bill was ambiguous. - Decided in favour of revenue. Non deduction of TDS on Freight payments - whether compliance of third proviso can be deferred till 30th June of next financial year? - Held that:- Once the conditions of further proviso of section 194C(3) are satisfied, the liability of the payee to deduct tax at source would cease. The requirement of such payee to furnish details to the income tax authority in the prescribed form within prescribed time would arise later and any infraction in such a requirement would not make the requirement of deduction at source applicable under sub-section (2) of section 194C of the Act. In our view, therefore, the Tribunal was perfectly justified in taking the view in the impugned judgment. It may be that failure to comply such requirement by the payee may result into some other adverse consequences if so provided under the Act. However, fulfillment of such requirement cannot be linked to the declaration of tax at source. Any such failure therefore cannot be visualized by adverse consequences provided under section 40(a)(ia) of the Act. In the present case even though the assessee has filed the original Form No. 15J with the ITO (TDS), Ajmer within prescribed time limit as provided in Rule 29D, subsequently he also filed the form with required details in the office of the CIT-V, Pune also. In our opinion the principles laid down in the case of Valibhai Khanbhai Mandad (2012 (12) TMI 413 - GUJARAT HIGH COURT) are applicable to the assessee’s case. We, accordingly, allow the Ground - Decided in favour of assessee.
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