Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 29 - AT - Income TaxDeductibility of tax at source on "year-end provisions" - No TDS remitted to the Government account - assessee submitted before the AO that provisions were made on ad hoc basis for the services received during the month of March and these provisions were reversed in the subsequent month i.e. in the month of April. Therefore tax was not deducted at source - As per DR even the amounts credited to the provision account instead of the party account by the assessee are clearly within the liability for the tax deduction under the provisions of the Act - HELD THAT:- As relying on M/s.Toyota Kirloskar Motor Pvt. Ltd [2021 (4) TMI 276 - KARNATAKA HIGH COURT] that the demand u/s 201(1) shall not be raised, when the assessee subsequently deducts tax at source at the time of payment. We also notice that the Tribunal has visualised various other possibilities also and dealt with them in accordance with law. Following the above said decision, we set aside the orders passed by Ld CIT(A) and restore all the issues to the file of the assessing officer for re-examining the issue in the light of principles - Appeal of the assessee is treated as allowed for statistical purposes.
|