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2021 (4) TMI 408 - MADRAS HIGH COURTRevision u/s 263 - ITAT set aside revision order passed u/s 263 by the CIT - whether assessee is not required to deduct TDS when the sub-contract amounts were credited into the ledger account of the subcontractor's which is against the provision of Section 194C? - whether Tribunal was right in holding that the Commissioner of Income Tax has not examined whether such payments was less than ₹ 20,000/- and cumulative payment was less than ₹ 50,000/- which is contrary to the material evidence filed by the assessee before the Assessing Officer?” - HELD THAT:- What has been credited by the assessee was only a provision towards possible liability and the said liability may be an actual liability or a contingent liability or the provision must have been made as a result of ample precaution by the assessee. The fact that the assessee has made a provision for TDS in its accounts does not in fact decide whether the assessee is bound by the provisions of the TDS or not. As already stated, the Commissioner of Income Tax has not given any finding that the assessee has made payments in excess of the mandatory limit prescribed for TDS or the assessee has credited the accounts of the sub-contractors with commensurate amounts. Though the order passed by the Assessing Officer may be prejudicial to the interest of the Revenue, it cannot be termed as erroneous. In such case, the order passed by the Commissioner of Income Tax cannot be sustained. The Tribunal taking into consideration all these aspects, rightly set aside the order passed by the Commissioner of Income Tax and allowed the appeal. We do not find any ground much less any substantial question of law to interfere with the order passed by the Appellate Tribunal. The appeal is liable to be dismissed.
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