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2019 (2) TMI 1357 - AT - Income TaxTDS u/s 194A - nature of a cash discount extended by the assessee being short realisation of the sale price or bill discounting - HELD THAT:- As far as receiving of the finance amount from financial institution prior then the normal period of release of amount, the relationship of debtor and creditor or lender/borrower has come into existence. On perusal of the detail of party-wise charges paid, which is available on page 128 of the paper book, we find that out of the sum of ₹ 9,02,309/-, an aggregate amount of ₹ 1,19,806/- has been paid in relation to HDFC bank, which is not covered under section 194A because of the exclusion given to banking company under section 194A(3)(iii)(a) of the Act. Thus, assessee can be held liable for non-deduction of tax for the remaining charges of ₹ 7,82,503/- (9,02,309 -1,19,806). We, accordingly, uphold the liability of non-deduction of tax at source to this extent and direct the Assessing Officer to restrict the disallowance under section 40(a)(ia) to this extent only. Addition on account of the machine supplied to M/s. Kazstray service infrastructure Private Limited is a free of cost - when the sale receipt should accrue to the assessee - HELD THAT:- Respectfully following the finding of the Hon’ble Supreme Court in the case of Excel Industries Ltd [2013 (10) TMI 324 - SUPREME COURT] we set aside the order of the lower authorities on the issue in dispute and direct the Assessing Officer to delete the addition made in the year under consideration of the amount of ₹ 19.50 lakhs, which the assessee has already offered in the subsequent assessment year under the head miscellaneous income.
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