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2016 (8) TMI 419 - AT - Income TaxTDS u/s 194C - whether expenditure incurred by the assessee towards subscription charges paid to pay channels is in the nature of direct expenditure coming under the provisions of section 28(1) of the Act or an expenditure coming under the general deductions under the provisions of section 37 of the Act - Held that:- The expenditure incurred is in the nature of direct expenditure, therefore, not coming under any of the provisions of section 30 to 38 of the Act, therefore, no disallowance can be made for want of non deduction of tax at source. We find that the Ld. CIT(A) after considering the explanations furnished by the assessee categorically held that the expenditure incurred by the assessee is in the nature of direct expenses, adjustable against the revenue for determination of profit u/s 28(1) of the Act, but not an expenditure covered u/s 30 to 38 of the Act, therefore, disallowance provided u/s 40(a)(ia) of the Act is not attracted. The revenue has failed to brought on record any evidences to prove that the findings of the fact recorded by the Ld. CIT(A) is incorrect. Therefore, we are of the view that the CIT(A) has rightly deleted the additions made by the A.O. under the provisions of section 40(a)(ia) of the Act, by holding that the expenditure incurred by the assessee is not coming under the provisions of section 30 to 38 of the Act, hence no disallowance can be made u/s 40(a)(ia) for non deduction of TDS. We do not see any error or infirmity in the order passed by the CIT(A). Hence, we inclined to uphold the CIT(A) order and reject the ground raised by the revenue. - Decided in favour of assessee.
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