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2016 (2) TMI 79 - AT - Income TaxNon deduction of tds - disallowance of lorry hire charges under section 40(a)(ia) - TDS u/s 194I or u/s 194C - Held that:- The vehicle owner/driver had to carry out the transportation of goods and the same was not done by the assessee. In view thereof, we have no hesitation to hold that the provisions of section 194C of the Act are correctly applied by the Revenue - Decided against revenue It is pertinent to mention that the ITAT, Cochin Bench in the case of Siraj V E vs. ITO [2016 (1) TMI 929 - ITAT COCHIN] by following the decision of the Hon'ble Kerala High Court in the case of Thomas George Muthoot (2015 (7) TMI 810 - KERALA HIGH COURT ) wherein held Section 40(a)(ia) makes it clear that the consequence of disallowance is attracted when an individual, who is liable to deduct tax on any interest payable to a resident on which tax is deductible at source, commits default. The language of the Section does not warrant an interpretation that it is attracted only if the interest remains payable on the last day of the financial year. If this contention is to be accepted, this Court will have to alter the language of Section 40(a) (ia) and such an interpretation is not permissible. - Decided against assessee Disallowance made under section 14A read with Rule 8D - Held that:- The disallowance under section 14A cannot be invoked as the assessee has not earned any exempt income during the relevant assessment year. The Assessing Officer is directed to delete the disallowance made under section 14A of the Act.- Decided against revenue
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