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2023 (11) TMI 743 - AT - Income TaxNon-deduction of Tax u/s 194A on the bill discounting charges/factoring charges deducted by the NBFC Company - Alternatively TDS u/s 194H on Commission or brokerage - TDS u/s 194C on Freight Charges - Default u/s 201(1) & 201(1 A) - HELD THAT:- , it has been held by various courts that factoring/bill discounting charges do not fall within the definition of interest u/s 2(28A) and thus are also not eligible for tax deduction u/s 194A. Further, the addition made by AO and confirmed by CIT(A) on account of non-deduction of tax u/s 194H by holding that bill discounting charges are in the nature of commission and liable for tax deduction 194H is bad and liable to be deleted. TDS u/s 194C on Freight Charges - HELD THAT:- There is no dispute with regard to the fact that once the assessee submits declaration to substantiate that the transporters did not own more than 10 goods carriages, question of deductibility of tax u/s 194C does not arise. Thus, in the present case, assessee has duly submitted declarations and PAN of the transporters. Thus, in light of the above mentioned facts and circumstances of the case, addition made by AO and confirmed by CIT(A) on account of non-deduction of tax u/s 194C is bad and liable to be deleted. Appeal of assessee allowed.
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