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2015 (6) TMI 1209 - AT - Income TaxRevision u/s. 263 - revision ordered for short deduction of TDS - HELD THAT:- This is merely a case of short deduction of TDS. Admittedly, the assessee has made labour payment or debited labour payment in the P&L Account and deducted TDS i.e. @ 1%. At best this can be a case for short deduction. Short deduction no disallowance can be made by invoking the provisions of section 40(a)(ia). This view of ours is fortified by the decision in the case of CIT Vs. M/s. S. K. Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT] wherein held Sec 40(a)(ia) can be invoked only when the two conditions, namely, that tax is deductible at source and such tax has not been deducted is satisfied. Where tax is deducted by the assessee under a wrong provisions of TDS and there is a shortfall, u/s 40(a)(ia) disallowance cannot be made. As the issue of short deduction is settled revision proceedings initiated by CIT u/s. 263 are invalid and hence, quashed. - Appeal of assessee is allowed.
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