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2018 (6) TMI 547 - AT - Income TaxDisallowance u/s 14A - Held that:- In the absence of any exempt income earned during the year no disallowance under section 14A of the Act can be made - thus we direct AO to verify assessee’s claim that no exempt was earned during the relevant previous year and in case aforesaid claim of the assessee is found to be correct no disallowance under section 14A r/w rule 8D should be made - allowed for statistical purpose. TDS u/s 194H - disallowance under section 40(a)(i) for non deduction of tax on payment of commission - Held that:- Identical issue arose in assessee’s own case [2017 (10) TMI 539 - ITAT MUMBAI] wherein it is held that TDS provisions are applicable u/s 194H in case it is held that the nature of the transaction entered into between the assessee and the distributor is that of commission but in case if it is decided that the nature of transaction is not commission but discount given on sales it cannot be regarded to be commission which is hit by the provisions of Section 194H - hence we restore the issue to the file of the AO for fresh adjudication - allowed for statistical purpose. Disallowance u/s 40(a)(i) and (ia) in respect of various payments - short deduction of tds - deduction of tax at source at a lower rate - Held that:- As decided CIT vs. S.K. Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT] where tax was deducted by the assessee, though under a bonafide wrong impression under wrong provisions, the provisions of Section 40(a)(ia) could not be invoked and if there was any shortfall due to any difference of opinion as to the taxability of any item or the nature of payments falling under various tax deduction at source provisions, the assessee could be declared to be an assessee in default under section 201 but no disallowance could be made invoking the provisions of Section 40(a)(ia) - hence we uphold the deletion of disallowance made by the AO. Disallowance u/s 40(a)(ia) in respect of linking fees - Tax deducted at lower rate - Held that:- Following our reasoning in above para we uphold the deletion of disallowance made under section 40(a)(ia) Withholding tax under section 195 - Payment of up–linking fees to a non–residence entity - Held that:- As could be seen from the material placed before us, Income Tax Officer (TDS), International Taxation, Noida, vide order dated 7th February 2014, passed under section 201(1) / 201(1A) for assessment years 2009–10, 2010–11 and 2011–12, has held that assessee was not liable to deduct tax at source on the payment made to this company as such payment was towards services rendered outside India. In view of the aforesaid, the disallowance made under section 40(a)(ia) of the Act deserves to be deleted. Therefore, we uphold the decision of the Commissioner (Appeals) on the issue, though, on our own reasoning. Payment of transponder fees - TDS u/s 194C OR 194J - Disallowance under section 40(a)(ia) - Held that:- it is a case of short deduction of tax at source and not a case of failure to deduct tax at source. No disallowance to be made.
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