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2018 (1) TMI 1659 - ITAT BENGALURUAddition u/s u/s 40(a)(i)and 40(a)(ia) - suo moto disallowance made by assessee - provision made towards payments - Assessee contending that the provisions made were in the nature of contingent liability as the identity of the recipients was not known and in the absence of income in the hands of the recipient, the question of tax deduction at source does not arise - whether the assessee can be held to be in default for non-compliance with the TDS provisions in the facts of present case? - HELD THAT:- As provisions are made at the end of the year in respect of which services were received and no TDS deduction was made. It is not the case of the assessee that the services were not rendered by the vendors. Therefore, it can be said that the liability had already crystallized and there exists an obligation to pay this amount and no uncertainty is involved in the transaction. Once services are received by the assessee, the payee or recipients of the payments are clearly identified and therefore the contention that the payees are not identifiable cannot be accepted. Furthermore, the provisions of section 194A and 194 C which are applicable to the payments in question contains Explanation clarifying that any amount credited to any account called “payable account” or “suspense account” or by any other name in the books, the same shall constitute credit of income to the account of the payee and the provisions of TDS are applicable. As in the present case, payees were identified and from the details of provisions made available before us, in the paper book, it is clear that it is not an ad hoc provision as the provisions contained odd figure also and it is also clear that the payees were clearly identified as the services were already received. Therefore, the ratio of the decision of this Tribunal in the case of M/s.TE Connectivity India Pvt. Ltd. [2016 (5) TMI 1222 - ITAT BANGALORE] is not applicable - in the result the appeal filed by the assessee is dismissed.
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