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2015 (7) TMI 737 - AT - Income TaxDis allowances u/s.40(a)(i) and u/s.40(a)(ia) - assessee had incurred operation cost towards connectivity services - Held that:- Taking a consistent view, we are inclined to hold that the assessee is liable to deduct TDS for payment made to foreign service provider. However, if there is short deduction of TDS then the payment cannot be disallowed as short deduction is different from no deduction of TDS. Accordingly, the Assessing Officer is directed to segregate the short deduction and no deduction of TDS on the payments made to foreign provider and he has disallowed only payment where there is no deduction of TDS.See Frontier Offshore Exploration (India) Ltd. vs. DCIT [2007 (2) TMI 265 - ITAT MADRAS-A]. Decided partly in favour of assessee for statistical purposes.
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