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2024 (1) TMI 1050 - MADRAS HIGH COURTLevy of GST - payment of performance linked incentives to two persons who held office as whole time directors of the company - discrepancies relating to E-way bills - Suppression of purchases by not availing of available Input Tax Credit (ITC) - HELD THAT:- The expenditure incurred by the petitioner towards remuneration and performance based incentives would have been reflected in the profit and loss account of the petitioner for the relevant financial years. The petitioner asserts that TDS was deducted under Section 192 and not Section 194-J of the Income Tax Act. The deduction of tax under Section 192 is a material fact, but is not conclusive. Ultimately, the test is whether such remuneration was paid towards services provided as an employee of the company or whether services were provided under a contract for service for fees or other consideration. Suppression of purchases by not availing of available Input Tax Credit (ITC) - Held That: - the petitioner contended that ITC was not claimed on account of ineligibility. By referring to discrepancies as between the different returns, the proposed liability was partly confirmed and partly dropped. The orders impugned herein were not issued after taking the relevant aspects into consideration. It is also possible that the petitioner did not place on record all relevant documents. In these circumstances, the impugned orders are not sustainable and are hereby quashed. These matters are remanded for reconsideration by the assessing officer. The petitioner is granted leave to place on record any additional documents with regard to all issues dealt with in the impugned orders - Petition disposed off.
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