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2017 (9) TMI 293 - AT - Income TaxTDS u/s 194I - Non deduction of tax on provision of rent charged to P&L A/c - assessee declared rent as inadmissible expense u/s 40(a)(ia) - Held that:- we find merit in the contentions of the assessee that he has already made suo motto disallowance of lease rental u/s 40(a)(ia) of the Act at the time of filing the return of income and paid income tax accordingly without claiming any expenditure on the ground that the provision of rent were of contingent nature never ever paid. We therefore are inclined to set aside the order of the FAA and hold that the provisions of section 194-I of the Act are not applicable where the assessee has not claimed the deduction of the expenses. The AO is directed accordingly. The ground raised by the assessee is allowed. TDS liability on internet charges and leaseline charges - whether TDS u/s 194-C or 194-I or 194-J - Held that:- Assessee has availed internet services and paid internet /lease charges for the same. According to the AO, the said payment of lease rent/internet charges were liable to tax u/s 194-I of the Act. As per the contentions of assessee he has only availed the internet connection and was not using any asset, plant or machinery which involved payment of rent. In our considered view these charges are not falling within the provisions of section 194-I. Moreover the case of the assessee is squarely covered by the various decisions referred to by the ld AR. Accordingly we set aside the order of ld. CIT(A) on this issue by allowing the ground raised by the assessee.
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