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2019 (2) TMI 518 - AT - Income TaxDeduction u/s 80P - Held that:- Hon’ble High Court of Kerala has categorically held in assessee’s own case for the assessment year 2007-08 [2011 (2) TMI 1422 - ITAT COCHIN] that the assessee is not a primary agricultural credit society and it is a co-operative bank. The Hon’ble High Court further held that the assessee is not entitled to deduction u/s 80P(2) of the Act, in view of introduction of section 80P(4) with effect from 01.04.2007. Staff Retirement Benefit Fund - as submitted that when the employees withdraw the amount from such fund, to the extent of withdrawals, it should be allowed as deduction u/s. 37(1) - Held that:- We notice that for the assessment year 2009-10 the assessee has accepted the CIT(A)’s order and no further appeal was preferred to the Tribunal. The assessee’s contention that to the extent of withdrawals made by the employees from unrecognized provident fund should be allowed as deduction u/s. 37 was never raised before any of the authorities below nor the assessee was able to prove fresh facts are not required to be examined. Hence, this plea of the assessee is rejected. Therefore, the order of the CIT(A) on this issue is confirmed. TDS u/s 195 - Disallowance of expenditure for non-deduction of TDS of commission to PCARDB - Held that:- The assessee having failed to deduct tax at source, the commission payment was rightly disallowed as per the provisions of section 40(a)(ia). In the interest of justice and equity, we are of the view that the assessee should be given an opportunity to prove that the deductees / payees have duly paid the tax on receipt of commission. The matter is restored to the AO. The assessee shall produce such proof as mandated by second proviso to section 40(a)(ia) read with 1st proviso to section 201 to prove that payees have duly paid taxes on the commission received by it from assessee. If the assessee is able to prove that the deductees / payees paid the tax on the commission that it had received from the assessee, such commission expenses shall not be disallowed.
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