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2014 (11) TMI 400 - AT - Income TaxLabour/Carting Charges disallowed u/s 40(a)(ia) Failure to deduct TDS u/s 194C Held that:- Out of the total amount, Assessee had deposited the TDS on 23.04.2007 which though was beyond the prescribed date but was before the filing of return of income - in the case of Commissioner of Income Tax-I Versus Royal Builders [2014 (1) TMI 136 - GUJARAT HIGH COURT] it has been held that when Assessee has deducted tax at source on or before due dates specified in Section 139(1), provisions of Section 40(a)(ia) would not apply - the issue where the Assessee has not deducted TDS but the payee has paid the taxes needs to be re-examined by the AO thus, the matter is remitted back to the AO for Examination Decided partly in favour of assessee. JCB rent disallowed Held that:- Section 40(a)(ia) cannot be seen as intended to be a penal provision to punish the lapses of non deduction of tax at source from payments for expenditure- particularly when the recipients have taken into account income embedded in the payments, paid due taxes and filed income tax returns in accordance with the law - assessee has not placed any material on record to demonstrate that the payee has offered the amounts received from Assessee as its income and has paid taxes on the same thus, the matter is remitted back to the AO for fresh adjudication Decided in favour of assessee.
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