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2020 (12) TMI 770 - AT - Income TaxTDS u/s 194J or 194C - disallowance u/s. 40(a)(ia) - Short deduction of TDS - Carriage Fees/Channel Placement fees - Whether payments made for use/ right to use of 'process' are 'royalty' as per Explanation 6 to section 9(1)(vi) hence such payments are covered u/s. 194J ? - HELD THAT:- No infirmity in the order of the Ld.CIT(A) in deleting the disallowance as the Ld.CIT(A) followed the order of the Tribunal and deleted the disallowance made u/s.40(a)(ia) of the Act. Even otherwise, the provisions of section u/s.40(a)(ia) of the Act have no application where there is short deduction of TDS as the Assessee in this case deducted TDS @2% under the provisions of section 194C of the Act as held by the Coordinate Bench of this Tribunal in the case of M/s. Sapiens Technologies (1982) India Pvt. Ltd. [2020 (9) TMI 1151 - ITAT MUMBAI] TDS u/s. 194C OR u/s. 194J - disallowance made u/s. 40(a)(ia) in respect of editing expenses - HELD THAT:- Since in the case on hand also there is short deduction of TDS as the assessee had deducted TDS @2% as against 10%, it is a case of short deduction of TDS and not non-deduction of TDS. In the circumstances no disallowance is attracted u/s. 40(a)(ia) of the Act. Thus, we sustain the order of the Ld.CIT(A) and reject the grounds raised by the revenue on this issue. Disallowance made towards commission expenses - CIT-A deleted the addition - HELD THAT:- Assessing Officer has disallowed the expenditure without any contrary evidences in possession. It is very evident from the assessment order itself that by letter dated 07.03.2014, the Assessee has submitted detailed break-up of the expenses. The Assessing Officer has not demonstrated as to why this commission expenditure is ingenuine and is not allowable. Since the Assessing Officer has not substantiated his reasoning and has not pointed out any defect in the claim of the Appellant, such disallowance of commission expenditure cannot be sustained. The Assessing Officer is therefore, directed to delete the disallowance of commission expenditure correctly - Decided against revenue.
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