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2017 (11) TMI 1140 - AT - Income TaxNon deduction of tds - agreement with Vodafone for extending certain space facility for which the company agreed to pay rent and besides that deposit for security purpose - Held that:- The assessee entered into an agreement with Vodafone for extending certain space facility and the said company agreed to pay the rent of ₹ 60,000/- per month besides security deposit. According to the assessee out of ₹ 11,61,000/- received from Vodafone, ₹ 7,20,000/- was received towards rent which was offered to tax and the remaining amount was received towards security. The authorities below have treated the remaining amount as revenue receipt for the reason that the assessee had claimed TDS of ₹ 1,16,100/- in computation of income. As per the AO the authorized representative of the assessee failed to explain as to why the company Vodafone deducted the tax at source on the entire payment if the part of it was towards security. On the other hand the Ld. CIT(A) affirmed the action of AO holding that the assessee has failed to reconcile the balance with the liability shown in the balance sheet to substantiate its plea. So, in our considered view before making addition of the amount in question, AO should have verified the facts to establish that the entire amount was revenue receipt. Under these circumstances we are of the considered view that further verification of the facts by the AO in the light of the contention of the assessee is necessary. Hence, we set aside the findings of the Ld. CIT(A) and restore the issue back to the file of AO to decide the same afresh - Appeal filed by the assessee allowed for statistical purposes.
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