Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 371 - HC - Income TaxPayment on account of service tax - allowable as business expenses - Held that:- It is undisputed that the obligation under the Finance Act, 1994 to pay the service tax is on the Respondent-Assessee being the service provider. This obligation has to be fulfilled by the service provider whether or not it receives the service tax from its clients/customers. Non payment of such service tax into the treasury would normally result in demand and penalty proceedings under the Finance Act, 1994. Therefore, as rightly found by the CIT (Appeals) and the Tribunal, the payment is on account of expediency, exclusively and wholly incurred for the purposes of business, therefore, deductible under Section 37(1) of the Act. As the above position, as held by the CIT (Appeals) and the Tribunal, is self evident from the provisions of law. TDS liability - Held that:- ITAT was justified in upholding the order of the Ld CIT(A) and deleting the disallowance made by the A.O. as the assessee is required not to deduct TDS on Rent u/s.194I, on salary u/s.192 and watch and ward expenditure u/s.194C as the same is not paid in lieu of contractual agreement between a security agency and the assessee. No substantial question of law.
|