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2015 (10) TMI 66 - AT - Income TaxTDS deduction for interest, professional fees and provision on Transport contractors - reversal of provision made - later TDS deducted on actual basis - CIT(A) held that the TDS was not deductable in the same year in which Assessee actually incurred the expenditure and relevant entries made in the books - Held that:- There is no dispute with reference to the fact that assessee has only made the provisions without identifying the parties as a liability in the year and actual amounts were credited in a later year on which TDS was made. It is also a fact that in the computation of income, assessee has added back the entire provision and has not claimed any deduction. We fully agree with the findings of the Ld. CIT(A) on the issue that there is no scope for deducting tax, as the amounts are not covered by the provisions of section 194C to 194J. Not only that A.O. has only raised the interest under section 201(1A) and has not raised the basic demand under section 201(1). This aspect was also considered by the Ld. CIT(A) that assessee was not held as ‘assessee in default’ and therefore, on this reason also interest cannot be levied as the amount to be deducted has not even quantified under section 201. AO was also not correct in levying interest up to the date of order while accepting that the amounts provided were reversed in later year and TDS was made on actual claims made in that year. See PFIZER LTD. Versus INCOME TAX OFFICER (TDS), (OSD) RANGE-2, MUMBAI [2012 (11) TMI 164 - ITAT MUMBAI ] - Decided in favour of assessee.
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