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2017 (10) TMI 244 - AT - Income TaxTDS u/s 194C not deducted - Revision u/s 263 - AO erroneously omitted to make addition in respect of payment as venue charges, payment to principals of schools and colleges and payment to examiners - non deduction of tds - Held that:- AO has chosen to make addition of TDS on foreign remittance but has not chosen to make any addition in respect of the payments made to resident in India because he was satisfied that each of the payments were less than the limits for which TDS has to be made in terms of section 194C of the Act. The presumption of the CIT in the impugned order is that the AO was satisfied that even the payments referred to in the show cause notice required compliance of Sec.194C of the Act, but were omitted to be disallowed u/s.40(a)(ia) of the Act. There is no basis on which the CIT has drawn such inference. Therefore we agree with the submissions of the ld. Counsel for the assessee that it was a conscious decision of the AO not to make any disallowance in respect of these payments by invoking the provisions of Section 40(a)(ia) of the Act. At best it can be said that two views were possible on the question whether TDS provisions were attracted to 3 payments as mentioned above to examiners by the Assessee. The AO has adopted one view which is permissible in law. The jurisdiction u/s 263 of the Act cannot be invoked in a case where two views are possible and the AO has taken one view with which the CIT does not agree. The decision of the Hon’ble Supreme Court in the case of Malabar Industries Ltd. (2000 (2) TMI 10 - SUPREME Court) clearly supports the plea of the assessee in this regard. - Decided in favour of assessee.
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