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2023 (2) TMI 23 - AT - Income TaxDisallowance u/s 40(a)(ia) - non-deduction of tax at source - CIT-A deleted the addition - HELD THAT:-Though the assessee had failed to deduct TDS on the impugned amount, the payee on other hand had paid taxes on the same and the assessee had filed the stipulated certificate as per Rule 31ACB of the Income Tax Rules certifying the fact of taxes have been paid by the payee (India Infoline Investment Services Ltd. in the present case) on the impugned payment. CIT(A) in the case of CIT Vs. Ansal Landmark Township Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] has held that in such circumstances, where taxes are shown to have been paid by the payee, no disallowance under section 40(a)(ia) of the Act was called for in the hands of the payer for default in taxes deduction at source. DR was unable to convert this factual finding of the ld.CIT(A) that the payer in the impugned case had paid taxes on the impugned sum involved and the certificate, as per Rule 31ACB of IT Rules 1962,certifying the aforesaid fact, had been filed to the AO. He was also unable to controvert or distinguish the decision relied upon by the ld.CIT(A) in the case of Ansal Landmark Township Ltd. (supra). No reason to interfere in the order of the ld.CIT(A) deleting disallowance by invoking provisions of section 40(a)(ia) of the Act. The ground raised by the Revenue is dismissed.
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