Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 100 - AT - Income TaxAddition u/s 40(a)(ia) - TDS on the chit dividend paid to the subscribers. - Held that - the payment of dividend to the subscribers of a chit towards dividend does not partake the character of interest and accordingly, the assessee is not liable to deduct TDS under S.194A - Decided in favor of assessee. Restricting the proportionate disallowance of expenses on collection made by the assessee on behalf of its subsidiary companies - Held that - The CIT(A) has rightly observed that it is only the staff in certain branches which would be collecting subscription on behalf of the subsidiary companies. In the aforesaid view of the matter, the order passed by the CIT(A) in restricting the disallowance appears to be reasonable and calls for no interference. Accordingly, we uphold the order of the CIT(A). - Decided against the assessee. TDS u/s 194C - composite contract - division of work order - addition u/s 40(a)(ia) - Held that - the payments have been artificially broken up to avoid the TDS provisions. If the payments have been made in terms with the MoU for carrying out certain work then certainly the TDS provisions are attracted and the assessee was obliged under the Act to deduct tax at source. Even as per the break up given by the assessee certain payments have been made towards hire charges of plants, generators, and other equipment which certainly attract TDS provisions. As the assessee has not deducted at source from the payments made to M/s Ushakiran Movies Ltd., in our view, the disallowance made u/s 40(a)(ia) was justified. - Decided against the assessee.
|