Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 1448 - AT - Income TaxShort deduction of tds - TDS u/s 194C or 194J - Payment Customs House Agents - HELD THAT:- In a case like this, where the appellant has deducted tax at source in respect of the payments made to CHAs @ 2% under section 194C, when it is required to be made @10% u/s. 194J the provisions of section 40(a)(ia) cannot be made applicable. As held by the Hon’ble High Court of Calcutta [2012 (12) TMI 873 - CALCUTTA HIGH COURT] that if there is any shortfall due to any difference of opinion as to the taxability of any item or the nature of payment falling under various TDS provisions, the assessee can be declared to be an assessee in default u/s. 201 of the Act and no disallowance can be made by invoking the provisions of section 40(a)(ia) of the Act. Therefore, the disallowance made by the assessing officer cannot be sustained. Addition on account of disallowance of payments made to CHAs u/s. 40(a)(ia) of the IT Act, 1961 stands deleted. - A short deduction of tax at source, even if any, cannot be visited with the disallowance under section 40(a)(ia) - Decided in favour of assessee.
|