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2014 (1) TMI 283 - AT - Income TaxDeletion of disallowance u/s 40(a)(ia) of the Act - Applicability of section 194J of the Act - Held that:- The assessee's contention, even as observed by the Bench during hearing, that no tax could possibly be deducted at source by it as the 'payment' stood effected only by way of deduction by ZTL - Even assuming liability to TDS, the obligation for the same would lie with the payer-ZTL, as it is only it who has under the circumstances made the payment (to itself) by expropriating a liability outstanding for payment - That is, even if the said payment is liable to TDS, it is only ZTL who was required to deduct tax at source thereon, and deposit the same to the credit of the central government, and not the assessee, who could not be charged with the non- deduction of tax at source - with the said liability, much less the consequence/s - This is as the deduction of tax at source by the assessee was unfeasible, representing an impossibility – the order deleting the disallowance u/s. 40(a)(ia) for non-deduction of tax at source upheld – Decided against Revenue.
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