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2011 (4) TMI 887 - AT - Income TaxNon deduction of TDS - Disallowance u/s 40(a)(ia) - Held that:- The undisputed facts are that assessee has obtained Form No. 15-I from the sub-contractors to whom a total payment of Rs. 7,93,34,193 has been made, thus once assessee has obtained Form No. 15-I from the sub-contractors whose contents are not disputed or whose genuineness is not doubted then assessee is not liable to deduct tax from the payments made to sub-contractors. The two events are spatially kept apart by the Legislature thus giving a latitude to the assessee to submit Form No. 15J to the Commissioner much after he receives Form No. 15-I from the sub-contractors. It is at this point of time second proviso would come into play and when Form No. 15-I are submitted by the sub-contractors to the contractor then contractor is not required to deduct tax from such payments. Once deductibility of tax depends upon submission or non-submission of Form No. 15-I from the sub-contractor to the assessee then non-compliance of third proviso becomes merely technical without affecting in substance the deductibility or non-deductibility of tax on payments made by the assessee to the sub-contractors. Therefore, in our considered view non-compliance of third proviso becomes merely a technical default, which even if, remained non-complied would not affect the operation of section 40(a)(ia) - Appeal is partly allowed
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