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2022 (11) TMI 444 - AT - Income TaxTDS u/s 194J - disallowance of Primary Rate Interface (PRI) line charges paid to telecom companies on account of non-withholding of taxes - HELD THAT:- This issue is squarely covered in favour of the assessee by the order of Pune Tribunal in assessee’s own case [2022 (6) TMI 737 - ITAT PUNE] in the case of Lee & Murihead (P) Ltd. [2019 (4) TMI 1871 - BOMBAY HIGH COURT] - Further, we find that in the said decision, had referred to the decision of Hon’ble Supreme Court in the case of CIT Vs. Kotak Securities Ltd. [2016 (3) TMI 1026 - SUPREME COURT] while providing relief to the assessee. This decision of Hon’ble Apex Court has been placed before us in the paper book filed - In view of the aforestated judicial pronouncement where the addition on lease line charges have been deleted, respectfully following the same, on the same parity of reasoning this ground of appeal of the assessee is allowed and the A.O/T.PO is directed to delete addition on lease line charges from the hands of the assessee. Ground is allowed. Disallowance of expenditure made pursuant to ESOP scheme floated by the assessee’s parent company - Disallowance u/s 40(a)(ia) or u/s 37 - HELD THAT:- As noted by the D.R.P that in the said report of the A.O he had constantly harped upon the point that the assessee was not able to substantiate that the amounts were paid to employees as perquisites on which TDS has been deducted. Once the addition is sustained by the D.R.P and made by the A.O for non-deduction of TDS the provisions for addition and confirming the disallowance should have been u/s 40(a)(ia) of the Act and not u/s 37 of the Act as has been invoked by the A.O and sustained by the ld. D.R.P. In view thereof, we set aside the findings of the ld. D.R.P on this issue and allow this ground of appeal of the assessee. Ground is allowed.
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