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2013 (6) TMI 460 - AT - Income TaxDisallowance was made u/s 40(a)(ia) - short deduction of TDS - 194C v/s 194I - Held that:- This issue is no more res integra in view of several orders passed by various benches of the Tribunal holding that short-deduction of tax at source cannot lead to disallowance u/s 40(a)(ia). See U.E. Trade Corporation (India) Ltd. Vs. DCIT (2012 (8) TMI 700 - ITAT DELHI) and DCIT Vs. Tekriwal (2011 (10) TMI 10 - ITAT, KOLKATA) upheld by the Hon'ble Calcutta High Court in [2012 (12) TMI 873 - CALCUTTA HIGH COURT] to held that provision of section 40(a)(ia) do not apply in case of short fall in the deduction of tax at source. In favour of assessee. Non deduction of TDS - Held that:- The nature of payments made are in the category of professional and technical services. The assessee has placed no material on record to prove that these were small time employees engaged on temporary basis & no complete identification of these three persons before the authorities below. There is no denying the fact that the assessee did not deduct any tax at source from these payments u/s 194J, the act of the assessee in making these payments without deduction of tax at source, clearly brought this case within the mischief of section 40(a)(ia). Against assessee. Payment of location expenses & property hire charges - CIT(A) deleted the addition - Held that:- These amounts were paid by the assessee after deduction of tax at source but at lower than the eligible rate. Thus considering ground 1 no disallowance u/s 40(a)(ia) do not apply in case of short fall in the deduction of tax at source. In favour of assessee. Payment made of Set Construction Expenses - CIT(A) deleted the addition admitting fresh evidence - Held that:- The impugned order that the CIT(A) did not call for any remand report from the AO before admission of this additional evidence. In our considered opinion, the ends of justice would meet adequately if the impugned order on this issue is set aside and the matter is restored to the file of AO for making a proper verification in this regard. In favour of revenue for statistical purposes.
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