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2017 (8) TMI 1056 - AT - Income TaxTDS u/s 194C or 194J - payment made to the cable operators as Channel Subscription Fee - addition u/s 40(a)(ia) - Held that:- The Tribunal noted the earlier decision of the Tribunal in assessee’s own case for Assessment Years 2008-09 to 2011-12 [2014 (12) TMI 716 - ITAT MUMBAI] held that such payments were liable for deduction of tax at source u/s 194C of the Act and not u/s 194J of the Act, as canvassed by the Revenue. The aforesaid precedents continue to hold the field as the same have not been altered by any higher authority and, therefore, in this view of the matter, it has to be held that the Assessing Officer was wrong in concluding that there was a default on the part of the assessee in deducting tax at source on the impugned payment u/s 194C of the Act so as to trigger Sec. 40(a)(ia) of the Act. A mere shortfall in deduction of tax at source would not justify invoking of Sec. 40(a)(ia) of the Act in order to disallow the expenditure. The CIT(A) correctly accepted the aforesaid plea and accordingly directed the Assessing Officer to delete the disallowance made u/s 40(a)(ia) of the Act. - Decided in favour of assessee.
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