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2016 (4) TMI 430 - HC - Income TaxDisallowance u/s 40(a)(ia) - lesser deduction of tds - ITAT allowed the claim - Held that:- There are two angles to the matter: The first is, whether it was a case of `no deduction’ or not in the present case. The answer would be in the negative because, the deduction was already made at the rate of 1%. The second angle would be as to whether it was under a bona fide wrong impression that only 1% was deducted instead of 2%. The contention of the assessee was that, having realized that deduction was 2% instead of 1%, the amount of TDS has been paid with interest. It is also a matter of fact that, two separate rate of deductions have been provided for the same work of contractor, one is at the rate of 1% if the contractor is individual or HUF, whereas, it is 2% if the contractor is other than individual or HUF. The Tribunal, in view of facts and circumstances, found that, it is a bona fide wrong impression. As such, on the aspects of the bona fide wrong impression keeping in view the contention of the assessee that in the middle of year, there is change of law about the deduction, as well as on the non-availability of the provisions of Section 40(a)(ia), when the issue is covered by the Calcutta High Court Judgment in case of S.K.Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT ], we do not find that any substantial question of law would arise for consideration as sought to be canvassed. - Decided against revenue
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