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2018 (6) TMI 894 - AT - Income TaxAdditions made u/s 40(a)(ia) - short deduction of tax at source - Held that:- In the case of DCIT vs S.K. Tekriwal [2011 (10) TMI 10 - ITAT, KOLKATA], Hon’ble Kolkata High Court has held that section 40(a)(ia) refers only to the duty to deduct tax and pay to government account also if there is any shortfall due to any difference of opinion as to the taxability of any items or the nature of payment falling under various TDS provisions, the assessee can be declared to be an assessee in default u/s 201 but no disallowance can be made - hence following the said decision we delete the disallowance made - Decided in favor of assessee. Disallowance u/s 40(a)(ia) for failure to deduct tax at source - Held that:- the learned counsel for the assessee has not raised any material contention to show that the assessee was not liable to deduct tax at source from the relevant payment. It is thus clear that the assessee had failed to deduct tax at source from the payment u/s 40(a)(ia) - we therefore, modify the impugned order of the Ld. CIT(A) on this issue and restrict the disallowance of ₹ 1,16,51,016/ - partly allowed in favor of assessee. Disallowance of amount paid on donation and subscription - Held that:- the assessee is a construction company executing the work at different sites. On these sites, different pujas and functions are performed for which the assessee has to give donations and subscriptions - thus there is some nexus of the expenditure incurred by the assessee on donations and subscriptions to its business - this claim of the assessee is not fully verifiable in the absence of the relevant details and supporting documentary evidence - hence it would be fair and reasonable to allow the claim of the assessee on account of donations and subscriptions only to the extent of 50% - appeal of the assessee is partly allowed.
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