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2014 (1) TMI 742 - AT - Income TaxAddition made u/s 40(a)(ia) of the Act Payment made to sub-contractors TDS not deducted Held that:- The Assessee was not required to deduct TDS as he was a sub- contractor and the payment made by him was to a sub sub-contractor - whether the assessee is a sub-contractor or main contractor has not been examined either by Assessing Officer or CIT(A) as there is no finding to this effect in their orders Thus, the issue needs to be examined the matter remitted back to the CIT(A) for verification Decided in favour of Assessee. Addition restricted u/s 40(a)(ia) of the Act Held that:- The Assessing Officer had disallowed the payment made to sub-contractors on which the assessee had not deducted TDS - The total disallowance worked out under 40(a) (ia) was Rs. 33,76,994 - CIT(A) after considering the submissions of the Assessee noted that the amended provisions of section 194C with effect from 01.10.2004 applied to the transactions entered into on or after that date and hence the aggregate limit of contractual amount of Rs. 50,000/- for application of TDS provisions has to be calculated for the period 1.10.2004 onwards the relief granted to the assessee of Rs. 19,27,931 being the payment made in excess of Rs. 50,000 reckoned from 01.10.2004 Revenue could not controvert the findings of CIT(A) There was no reason to interfere with the order of CIT(A) Decided against Revenue. Addition on account of disallowances of various expenses - Held that:- CIT(A) while deleting the addition has noted that the Assessee had submitted the details of expenses before Assessing Officer - He also noted that financial and other similar expenses to be properly - the disallowance restricted to Rs. 65,166 - Revenue could not controvert the findings of CIT(A) or bring any material in its support there was no necessity A.Y. 2005-06 to interfere with the order of CIT(A) Decided against Revenue.
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