TMI Blog2012 (8) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... yment as per section 194C of the I.T.Act: Name of party Amount (Rs.) TDS (Rs.) Remarks M/s. Bluefin Marine 27,78,000 57,277 Boat hiring charges for vibrocoring work M/s. Ravikiran Boat Services 85,000 1,751 Boat hiring charges for HRP project Total: 28,63,000 59,028 4. The AO stated that said expenditure is in respect of equipment hiring and is covered under section 194-I of the Act and rate of TDS applicable on the same is 11.33% (including surcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld A.R. submitted that the Tribunal held that when assessee deducted TDS u/s 192 of the Act, provisions of section 40(a)(ia) do not apply as the provision can be invoked in the event of non-deduction of tax but not for lesser deduction of tax. Ld A.R. submitted that in the case of the assessee the provisions of section 194-I is applicable instead of Section 194C of the Act, which could be a case of short deduction of TDS and as such, the disallowance of expenditure claimed by the assessee cannot be made by applying provisions of section 40(a)(ia) of the Act. Ld A.R. also placed reliance on the decision of Rajkot Bench of ITAT in the case fo Shri Narendra M. Jatiya vs DCIT (I.T.A. No.119/jt/2011 for A.Y. 2006-07) vide order dated 20.1.2012. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not u/s.194 I of the Act. Therefore, assessee cannot be considered in default in not deducting TDS and as such the provisions of section 40(a)(ia) could not be applied because deduction of tax was only due to difference of opinion as to the taxability of nature of payment falling under various TDS provisions. Similar view has been taken by the ITAT Mumbai in the case of M/s. Chandabhoy Jassobhoy (supra) to which one of us (Accountant Member) is a party. Respectfully following the above decision of co-ordinate benches of the Tribunal, we hold that the authorities below were not justified to disallow the claim of assessee by invoking provisions of section 40(a)(ia) of the Act. The assessee could be declared an assessee in default under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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