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2022 (8) TMI 1036 - ITAT DELHIAddition to the returned income on account of TDS payable - Cash basis of accounting - "Provision" versus "Payable" - HELD THAT:- Tax Authorities below have not discussed as to what were the payments which were made giving rise to TDS. It appears that Ld. AO was carried by the fact that the assessee is following cash system of accounting, therefore, the TDS being one part of expenses debited in P&L Account therefore, to the extent of TDS the expenses being not actually incurred and paid in the relevant financial year, have to be disallowed. The Bench is of considered opinion that such an opinion of Tax Authorities below is not sustainable because the assessee has shown the expenditure as a whole in his accounts having been paid. What remains in the hands of assessee is not on account of any payment due to such persons but the tax deducted at source is left to be deposited to the Government in accordance with the relevant provisions. It was for the purpose of accounting that the amount has been shown in the form of provision not as ‘payable’ on any account to any creditor or on a contingency but held merely to be ‘deposited’ in due course. Even otherwise, the heads of expenses against which the payments were made when stand allowed through P&L account, some part of it, being TDS, cannot be left standing alone, by holding it as still ‘payable. As relying on M/S DELOITTE HASKINS & SELLS VERSUS THE ASST. CIT, CIRCLE-37 (1) , NEW DELHI. [2021 (1) TMI 738 - ITAT DELHI] case the appeal is allowed with direction to delete the impugned addition.
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