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2018 (4) TMI 988 - AT - Income TaxTDS liability to be deductible u/s 194J or 194C - short deduction of tds on administrative fee - assessee in default - Held that:- AO while framing the order under section 143(3) read with section 144C dated 31.03.16 disallowed the payments to Lobo Staffing Solutions Pvt. Ltd. under section 40(a)(ia) and added the same to the income of the assessee. The Dispute Resolution Panel directed the AO to make the deletion by holding that the payments to Lobo Staffing Solutions Pvt. Ltd. were a contractual payments and not professional fee and therefore TDS is not required to be made under section 194J. Merit in the contention of the A.R. that even if the payment to the said company by way of administrative fee of ₹ 45,42,411/-was liable for TDS u/s 194J of the Act, the assessee has deducted TDS of 44,17,617/- which constitute 97% of the administrative fee. Hence, there is no short deduction of TDS from administrative fee. Thus as regards non deduction of TDS on the reimbursement of expenses, we are inclined to set aside the order of Ld. CIT(A) and hold that there is no short deduction of TDS and hence there is no default under section 201(1) of the Act. Consequently, there can not be interest under section 201(1A) of the Act. - Decided in favour of assessee
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