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2023 (4) TMI 274 - ITAT CHENNAITDS u/s 194C - disallowance of expenditure u/s. 40(a)(ia) - payments made towards CFS charges for non-deduction of TDS - Scope of amendment to section 40(a)(ia) by the Finance Act, 2014 - Assessee alternate plea in light of case of CIT vs Calcutta Export Company [2018 (5) TMI 356 - SUPREME COURT] directed the AO to disallow 30% of expenses incurred by the assessee without deducting TDS u/s. 40(a)(ia) by considering amendment made by the Finance Act, 2010 to provisions of section 40(a)(ia) - HELD THAT:- The assessment year involved in present appeals are assessment year 2009-10 & 2010-11, which are prior to amendment to section 40(a)(ia) of the Act by the Finance Act, 2014 w.e.f. 01.04.2015 and thus, the assessee is not entitled for 30% disallowance towards expenditure incurred without deduction of tax at source, as held in SHREE CHOUDHARY TRANSPORT COMPANY VERSUS INCOME TAX OFFICER [2020 (8) TMI 23 - SUPREME COURT]. Therefore, we are of the considered view that, there is no merit in the alternate plea taken by the assessee for disallowance of 30% of expenditure in light of amended provisions of section 40(a)(ia) of the Act by the Finance Act, 2014 w.e.f. 01.04.2015 and thus rejected. Yet another alternate plea of the assessee in light of second proviso to section 40(a)(ia) of the Act inserted by the Finance (no.2) Act, 2019 w.e.f. 01.04.2020, we find that the assessee could not justify its arguments in light of necessary evidences including declaration of income by the payee in the return of income and consequent certificate from the Accountant as prescribed under the law. Therefore, we are of the considered view that, alternate plea of the assessee in light of second proviso to section 40(a)(ia) of the Act inserted by the Finance Act, 2019 w.e.f. 01.04.2020 cannot be accepted and thus, rejected. We are of the considered view that there is no error in the reasons given by the CIT(A) to sustain additions made by the AO towards disallowance of expenditure u/s. 40(a)(ia) of the Act for non-deduction of TDS u/s. 194C of the Act. Thus, we are inclined to uphold the findings of the ld. CIT(A) and reject alternate plea taken by the assessee. Decided against assessee.
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