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2024 (1) TMI 913 - AT - Income TaxRevision u/s 263 - TDS u/s 194B on payments made to players on winnings from lotteries/crossword puzzles - assessee is a private limited company engaged in the business of providing a platform for playing games (primarily the skill game of Rummy) online - PCIT alleged details pertaining to the winning amount and applicable TDS provisions were not examined by the AO while passing the assessment order and TDS was not deducted from the full amount of payment made by the assessee - HELD THAT:- From the perusal of submissions filed by the assessee, we find that the AO though initiated the enquiry on tax withholding on payments made by the assessee to players on winning from games available on its website, however, it is not evident whether the AO examined/verified the details so filed by the assessee. It is also not evident that the AO examined/verified whether the deduction of tax by the assessee is as per the provisions of Chapter XVII-B, particularly section 194B of the Act, which requires tax to be withheld on the winning amount from any lottery or crossword puzzle, at the time of payment, when the winning amount exceeds Rs. 10,000. From the assessment order, it is difficult to infer whether the AO was satisfied with the assessee’s replies furnished from time to time or not. Further, the assessment order also does not indicate that the AO examined/verified the details furnished by the assessee with respect to the deduction of tax as per provisions of section 194B of the Act. Therefore, observations made do not support the plea of the assessee in the facts and circumstances of the present case. Thus we agree with the findings of the learned PCIT, vide impugned order, that the AO has not examined the details furnished by the assessee, and the assessment order needs enquiry on the issue of deduction of TDS under section 194B - Decided against assessee.
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