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2014 (1) TMI 300 - ITAT DELHIDeletion on account of short deduction of tax from salary u/s 201(1) of the Act – Alowability of Deduction on House Building Advance u/s. 24(1)(vi) and on principal amount of House Building Advance u/s. 80C of the Act – Completion Certificates of the houses not taken – Held that:- The assessee obtained verification of particulars of loss under the head income from house property from the employees - The assessee company has also obtained interest certificate from the bank before allowing deduction u/s 24(1)(vi) for arriving at the TDS – the Observation of CIT (A) that neither Rule 26B nor the Circulars of CBDT stipulate obtaining of completion certificate of house before allowing deduction u/s. 24(1)(vi) and u/s. 80C of the Act for arriving at the TDS liability upheld – following C.I.T. vs. Semiconductor Complex Ltd. [2007 (1) TMI 155 - PUNJAB AND HARYANA High Court] – Decided against Revenue. Deletion of Interest u/s 201(1A) of the Act – Disproportionate deduction of tax from salary – Held that:- Following The Commissioner of Income Tax Versus M/s Enron Expat Services Inc. [2010 (8) TMI 201 - UTTARAKHAND HIGH COURT] - Section 192(3) permits the assessee to make adjustments during the financial year and once the assessee has deducted the tax u/s. 192(1) by making adjustments during the financial year it cannot be held that the assessee was in default u/s. 201(1A) of the Act - there is no infirmity in the action of the Ld. Commissioner of Income Tax (A) in holding that the action of the Assessing Officer in deleting the interest u/s 201(1A) for the default in not deducting tax on average basis is not proper – Decided against Revenue.
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