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2016 (5) TMI 1228 - AT - Income TaxNon-deduction of tax at source on year end provision - Held that:- Tribunal for the A.Y.2007-08 in assessee’s own case, wherein the Tribunal while relying upon another decision of coordinate bench of the Tribunal in the case of IDBI Vs. ITO, (2006 (7) TMI 248 - ITAT BOMBAY-H ) has held that since the payee is not identifiable at the time of making of provision and further the entire provision has been written back in the next year and the actual amounts paid/credited were subjected to TDS as and when the liability was crystalised or the payments were made and even when the assessee himself had disallowed the entire amount in the computation of income upon which no TDS was deducted, in that event proceeding u/s.201(1) and the levy of interest u/s.201(1A) was not justified. Thus appeals of the revenue relating to disallowance made on account of nondeduction of TDS on year-end and provision are hereby dismissed. - Decided in favour of assessee Non-deduction of tax at source on purchase of traded goods and packing material - Held that:- The provisions of Chapter XVII·B of the Act cannot be said to be applicable on purchase of finished/traded goods Accordingly, there is no default on the part of tile Appellant in complying with the provisions of Chapter XVII-B of the Act while making payment for purchase of finished/traded goods and Purchase of Packing Material without deducting tax at source This ground of appeal is allowed in favour of the appellant. - Decided in favour of assessee
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