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2019 (10) TMI 241 - AT - Income TaxDisallowance u/s 40(a)(ia) - short deduction of TDS on foreign payments - Instead of 20% as opined by the ld. AO, assessee effected the TDS at 4.22% on the payment - HELD THAT:- In the case of S.K. Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT] Hon’ble High Court held that in the case of shortfall in deduction due to any difference of opinion as to the taxability of any item or nature of payments falling under various TDS provisions, the proper course for the revenue is to declare the assessee as an assessee in default u/s 201 of the Act but no disallowance can be made by invoking the provisions of Section 40(a)(ia) of the Act. In these circumstances, while respectfully following the said decision, we hold that it is not open for the revenue to disallow any amount u/s 40(a)(ia) of the Act and the addition is directed to be deleted. - Decided in favour of assessee.
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