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2024 (3) TMI 616 - AT - Income TaxTDS u/s 194I or 194IB - Disallowance u/s 40(a)(ia) - TDS was deducted but the section 194IB was mentioned wrongly instead of section 194I(b) - HELD THAT:- The rental expenditure had been duly subjected to deduction of tax at source at the applicable rates and one party RMZ Ecoworld Infrastructure Private Limited had even obtained lower deduction certificate u/s 197 of the Act from the TDS officer. When these facts are staring at us, the action of the lower authorities in making a mamooth disallowance merely on the wrong mentioning of section 194IB instead of section 194I(b) of the Act cannot be sustained. Hence we have no hesitation to delete the disallowance u/s 40(a)(ia) - Ground raised by the assessee are allowed. Additional claim for refund of excess Dividend Distribution Tax (DDT) - HELD THAT:- This issue is no longer res integra in view of the recent decision of Total Oil India Pvt Ltd [2023 (4) TMI 988 - ITAT MUMBAI (SB)] wherein it was held that Double Taxation Avoidance Agreement (DTAA) does not get triggered at all when a domestic company pays DDT u/s 115O of the Act where contracting states to a tax treaty intend to extend treaty protection to domestic company paying dividend distribution tax, only then, domestic company can claim benefit of DTAA, if any. Ground raised by the assessee are dismissed.
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