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2019 (12) TMI 666 - AT - Income TaxDeduction u/s 80-IB(10) - HELD THAT:- Considering the facts in the present case are identical to earlier years and follow the precedence and direct the AO to grant deduction u/s 80IB(10) Disallowance u/s 40(a)(ia) - non- deduction of TDS on provision for expenses - contentions of the ld. AR that no bills/invoices were raised by the parties. Hence, there is no liability to pay the amount. But as an Accounting Policy, the assessee has made provision in the books of accounts - HELD THAT:- we found this disputed issue was dealt by the co-ordinate bench in TE CONNECTIVITY INDIA PVT. LTD. [2016 (5) TMI 1222 - ITAT BANGALORE] and SANGHI INFRASTRUCTURE LTD. [2018 (7) TMI 2072 - GUJARAT HIGH COURT] where provision was made by assessee for expenses for which bills were not received during year under consideration, no section 40(a)(ia) disallowance could be made for nondeduction of TDS.” In the present case, no bills and invoices were raised by the creditors and no liability of payment arose. Hence we, followed the judicial decisions and are of the opinion that the assessee is under no obligation to make payment and no TDS is deducted and accordingly we direct the AO to delete the addition and allow the grounds of appeal of the assessee.
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