Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1517 - ITAT CHANDIGARHNon deduction of TDS on account of Contractual Payments to the Gunman - Additions u/s 40(a) (ia) - income of a statutory corporation established by Central, State or Provincial Act for the welfare and economic upliftment of ex-servicemen (being citizen of India) - Exemption U/S 10(26BBB] - Held that:- Section 10 (26BBB) came into existence after the issue of the said Circular dated 16-7-2002. The said section was inserted in the Income - tax Act vide Finance Act, 2003 (w.e.f. 1-4-2004) unconditionally exempting any income of a corporation established by a Central, State or Provincial Act for the welfare and economic upliftment of ex-servicemen being the citizens of India. The corporations covered under section 10(26BBB) are also statutorily not required to file return of income as per section 139 of the Act. References were received in the Board requesting for extension of the aforesaid exemption from TDS granted vide Circular No.4/2002 to the corporations covered under section 10(26BBB) as well. The CBDT has now clarified that there would be no requirement for tax deduction at source from payment made to corporations enjoying exemption under section 10(26BBB). The Central Board of Direct Taxes, issued Circular No. 07/2015 no. F. No. 275/50/2006 IT(B) Dated April 23, 2015 on serial no 65 Any Income of a corporation for ex-servicemen [Section 10(26BBB)]. From assessment year 2004-05, any income of a statutory corporation established by Central, State or Provincial Act for the welfare and economic upliftment of ex-servicemen (being citizen of India) is exempt from tax under section 10 (26BBB). Keeping in view the Circular issued by the CBDT the disallowance made by the Assessing Officer which was not based on the said Circular is hereby deleted. Disallowance under section 43B - interest expenses payable to SADB as on 31st March 2013 - Held that:- We have gone through the provisions of the Income Tax Act,1961 which specifically excludes the Co-operative Development Banks from the purview of the provisions of Section 43B. Hence, the addition made by the Assessing Officer without any legal basis is hereby directed to be deleted.
|