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2015 (6) TMI 24 - AT - Income TaxNon-deduction of tax under section 194C - assessee-in-default under section 201(1) - Held that:- As the appellant was required to deduct tax on the year end provisions made by it. However, as tax has been deducted subsequently before due date of filing of return and the remaining amount being disallowed and added back to the total income while filing return of income, the appellant is not held to be in default u/s.201. - The AR of the assessee could not explain what is the grievance of the assessee arising out of the above order of the CIT(A), who has decided the issue in favour of the assesse - Decided against assesse. Non deduction of tax at source u/s.194C - assessee-indefault under section 201 - Held that:- Simply because the amount was disallowed in the assessment made by invoking the provisions of section 40(a)(ia), does not lead to the conclusion that the assessee cannot be treated as assessee-indefault under section 201 in respect of the same amount. Rather, when the assessee is found to be an assessee-in-default in respect of the TDS amount, then out of many consequences, one of the consequences, is disallowance under section 40(a)(ia) of the Act. We, therefore, do not agree with the order of the CIT(A) in respect of not treating the assessee as assessee-in-default in respect of ₹ 4,98,43,087/-, on the ground that the said amount was disallowed under section 40(a)(ia) of the Act. We, therefore, set aside the order of the CIT(A) to the above extent. However, we find that the assessee has also taken other grounds of appeal before the CIT(A) for its contentions that it should not be treated as assessee-in-default in respect of ₹ 4,98,43,087/-. The same was not adjudicated upon by the CIT(A) as he decided the issue in favour of the assessee on the above ground. In the circumstances, in our considered view, it shall be in the interest of justice to restore the issue back to the file of CIT(A) in respect of the amount of ₹ 4,98,43,087/- for deciding the other grounds of appeal after allowing reasonable opportunity of hearing to both the parties - Decided in favour of revenue for statistical purposes. Tds on payment of pest control charges - 194C or 194J - Held that:- error in the order of the CIT(A) could be pointed out by the DR. He could not cite any contrary decision in support of the claim of the Revenue that the tax was required to be deducted at source under section 194J and not under section 194C of the Act. Further, no material was brought on record by the Revenue to show that any technical services were availed by the assessee for doing pest control in its premises. Hence, we find no good reason to interfere with the order of the CIT(A), which is hereby confirmed - Decided against revenue.
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