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2017 (4) TMI 1184 - ITAT JAIPURPenalty imposed u/s 271(1)(c) - disallowance made u/s 40(a)(ia) - default relates to the timing of deduction of whether TDS should have been deducted at a time of credit in the ABA Pool Account or at a time of credit to the account of the individual ABA? - Held that:- Liability to pay under the contract is a relevant consideration for determining the liability towards the TDS and only when such event happens, the TDS has to be deducted. The entries/credit in the books of account have therefore to be read taking into consideration the contractual obligations under the contract and cannot be read devoid of the same. Its a different matter that such explanation has not been accepted by the AO and by the ld CIT(A) while confirming the disallowance in the quantum proceedings. However, the said explanation continue to hold the fort and support the case of the assessee against non-levy of penalty for furnishing inaccurate particulars of income. Further, the said explanation coupled with the fact that there is no dispute that the expenditure is genuine and the services have been availed by the assessee company and the amount have been paid to them also support the case of the assessee against non-levy of penalty. It is now well settled as held in case of Reliance Petroproducts Limited (2010 (3) TMI 80 - SUPREME COURT) that mere making of claim which is not sustainable in law by itself will not amount to furnishing inaccurate for return of income. There is no finding given by the Assessing Officer that in the details supplied by the assessee in its return of income, there is any incorrect, erroneous or false information which has been supplied by the assessee. - Decided in favour of assessee
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