Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 64 - AT - Income TaxTDS u/s 194C - addition u/s 40(a)(ia) - reimbursements of expenses or not - HELD THAT:- Assessee has not furnished any evidence before the AO or the CIT(A) that the recipients had no taxable income or that they had income which is less than taxable income or that the recipients have made the payment of tax on their receipts from the assessee. In view of the same, the proviso to Section 201(1) of the Act would not be applicable to the assessee and in the absence of such applicability, the second proviso to Section 40(a)(ia) of the Act also would not be attracted. TDS provisions are applicable in respect of the labour charges paid by the assessee. AO is therefore, directed to examine whether the labour charges paid by the assessee included reimbursement of the material and transportation cost and if it is found to be so, then after excluding such payment if the payment towards labour charges is less than ₹ 50,000/- to each of such persons, then TDS provisions would not be attracted. However, if the assessee is not able to produce the evidence in support of reimbursements, then the AO shall apply the provisions of section 40(a)(ia) to make the disallowance in respect of such payments. Appeal of assessee is partly allowed for statistical purposes.
|