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2018 (9) TMI 1017 - AT - Income TaxDisallowance U/s 40(a)(ia) - Non deduction of tds on payment made by the assessee to the contractor for construction of building - assessee is a society and engaged in the activity of maintaining the temple and application of the assessee U/s 12AA of the Act was rejected - AO accepted the income of the assessee under the “income from other sources” as per the computation of income - Held that:- When the income of the assessee has been assessed under the head “Income from other sources” and there is no provision U/s 56 to 58 of the Act to make a disallowance U/s 40(a)(ia) of the Act prior to the amendment vide Finance Act 2017 w.e.f. 1/04/2018 whereby sub-Section (1A) of Section 58 has been amended for the purpose of making a provision for disallowance U/s 40(a)(ia) of the Act. Therefore, in view of the above facts and circumstances of the case, when the amendment is applicable from 01/4/2018, no disallowance can be made U/s 40(a)(ia) of the Act against the income of the assessee assessed under the head “Income from other sources”, hence, we direct to delete the disallowance made U/s 40(a)(ia) of the Act. - Decided in favour of assessee
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