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2018 (5) TMI 1311 - AT - Income TaxAddition u/s 41 - addition as bogus sundry creditors - Held that:- The assessee before us had not written back the sundry creditors in the sum of ₹ 1,08,65,202/- to its profit and loss account and had continued to show the same in its balance sheet. Thus we have no hesitation in directing the AO to delete the addition made u/s 41(1) - Decided in favour of assessee Disallowance u/s 40(a)(ia) - short deduction of tax at source on labour and fabrication charges paid to Adhir Kumar Mondal - CIT-A held that since the return was filed belatedly u/s 139(4) of the Act by the payee the conditions prescribed in proviso to section 201(1) were not satisfied and accordingly the assessee is to be treated as assessee in default - Held that:- We find that the ld CITA had taken cognizance of this CA certificate but had not given weightage of the same due to his interpretation that section 139 referred to in the proviso to section 201(1) need to be construed only as section 139(1) and not otherwise. In these facts and circumstances, we hold that the assessee had furnished requisite evidences to prove that the payee had duly considered the subject mentioned receipt in his return of income and hence no disallowance u/s 40(a)(ia) of the Act could be inflicted on the same in the hands of the assessee payer Whether the provisions of section 40(a)(ia) of the Act could be invoked for short deduction of tax at source - Held that:- We find that this issue has been held in favour of the assessee by the co-ordinate bench decision of this tribunal in the case of DCIT vs S K Tekriwal (2012 (12) TMI 873 - CALCUTTA HIGH COURT) wherein it was held that in the case of short deduction of tax at source, no disallowance u/s 40(a)(ia) of the Act could be made in the hands of the assessee and the assessee could be proceeded against only under section 201 of the Act in such cases - Decided in favour of assessee
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