Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 1479 - ITAT CHANDIGARHTDS u/s 194C - addition u/ 40(a)(ia) - recipient have already included the Generator Expenses on which the appellant failed to deduct the tax u/s 194C in its Income Tax return filed under section 139 - Held that:- Addition is wholly unjustified. Where a person fails to deduct tax at source on the sum paid to a resident or on the sum credited to the account of a resident, such person shall not be deemed to be an assessee in default in respect of such tax if such resident has furnished his return of income under section 139 . What is common to both provisos to sections 40(a)(ia) and 201(1) of the Act is that as long as the payee or resident has filed its return of income disclosing the payment received by and in which the income earned by it is embedded and has also paid tax on such income, the assessee would not be treated as a person in default. The issue is covered in favour of the assessee by the judgement of the Hon'ble Delhi High Court in the case of CIT Vs. Ansal Land Mark Township P. Ltd [2015 (9) TMI 79 - DELHI HIGH COURT] which is of later dated 26..8.2015. It is well settled law that when two views are possible, the decision in favour of the assessee may be followed. Other conditions are not disputed. We delete the entire addition. - decided in favour of assessee.
|