Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 717 - ITAT KOLKATADisallowance of payment of commission on account of payment to sister concern - Held that:- The nature of the services rendered by the MFPL has not been justified by the ld. AR. The AO never raised the issue that it was made to the sister concern therefore it is disallowed. The AR has not brought the specific services rendered by the MFPL. In the similar facts & circumstances the issue has been decided in favour of Revenue by the Hon’ble High Court of Gujrat in the case of Gujarat Insecticides Ltd. v. Deputy Commissioner of Income-tax [2012 (10) TMI 1072 - GUJARAT HIGH COURT] wherein Tibunal noted that the onus was on the assessee, claiming such deduction, to establish that such payments were made for services rendered. TDS u/s 194C - disallowance of carriage inward expenses on account of non deduction of TDS - Held that:- There is amendment of proviso to Sec. 40(a)(ia) of the Act r.w.s 1st proviso to Sec. 201, wherein, if any payee has paid the taxes by offering / disclosing the said receipt in its return of income, then the payer (the assessee herein) should not be treated as assessee in default. Accordingly no disallowance u/s. 40(a)(ia) of the Act could operate in that scenario. The said proviso though inserted by the Finance Act 2012 w.e.f 1-4-2013 has been held to be retrospective in operation by recent decision of the Hon'ble Delhi High Court in the case of CIT v. Ansal Land Mark Township (P) Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT]. Thus we deem it fit and appropriate in the interest of natural justice and fair play to set aside this issue to the file of AO to decide the issue afresh in the light of the aforesaid judgment. Accordingly, we direct the AO to verify whether the payees have included the subject-mentioned receipts in their respective returns and paid taxes thereon or not. If that is so, then disallowance u/s. 40(a)(ia) of the Act shall not be made in the hands of assessee. Accordingly, assessee’s ground is allowed for statistical purposes.
|