Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1460 - AT - Income TaxNon deduction of TDS as per the provisions of sec.194A - CIT (Appeals) has deleted the addition on the ground that M/s. L & T Finance has shown the said amount as income in the return of income filed and has paid the tax due thereon - Held that:- The purpose of deducting tax at source is that there is no loss to the Government for tax due on income embedded in the amount paid by the assessee to the recipient of the amount. When the recipient of the amount includes the said receipt in its income and pays tax thereon, then there is no loss of revenue to the Government and, therefore, in our considered view, the Commissioner of Income Tax (Appeals) was fully justified in deleting the addition. Our view is supported by the insertion of the second proviso to sec. 40(a)(ia) of the Act by the Finance Act 2012 w.e.f. 01/04/2013 wherein held that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso - Decided in favour of assessee.
|