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2021 (7) TMI 1450 - AT - Income TaxTDS u/s 195 - Disallowance u/s. 40(a)(i) - payment towards communication and connectivity charges in Form 3CEB - CIT(A) deleting the disallowance made holding that the expenses involved therein as reimbursement cost - HELD THAT:- We note that the assessee made its contentions before the CIT(A) vide its submissions wherein the CIT(A) reproduced the relevant part of such submissions in his impugned order but however the CIT(A) did not discuss the same in detail while recording reasons for holding such payment cannot be considered as fees for technical services. He simply held the said payment was in the nature of reimbursement of cost allocation made by the BBPLC in respect of providing IT support services to assessee i.e. BSS so therefore, as rightly contended by the ld. DR, as agreed by the ld. AR, we find no reasons recorded by the CIT(A) in support of his finding in deleting the disallowance made by the AO u/s. 40(a)(i) of the Act is not justified. Thus, we deem it proper to remand the matter to the file of CIT(A) for its fresh adjudication. The assessee is liberty is file evidences, if any, in support of its claim. Thus, the grounds raised by the Revenue are allowed for statistical purpose. Cross objection of assessee - As contended that if at all the disallowance u/s. 40(a)(i) is sustained, without prejudice to such disallowance the assessee contended that it is entitled for enhanced deduction to the extent of disallowance u/s. 10A - HELD THAT:- Since, we have taken our view in the aforementioned paragraphs in remanding the matter to the file of CIT(A) for its fresh adjudication in respect of the issue u/s. 40(a)(i) of the Act, in our opinion, the issue raised in cross objection does not survive before this Tribunal but however the liberty is afforded to the assessee to raise the same before the CIT(A). The CIT(A) shall take up the issue while deciding the issue u/s. 40(a)(i) of the Act and pass order in accordance with law. Cross objection filed by the assessee is dismissed.
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