TMI Blog2013 (6) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... s ₹ 27,24,205/-. The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Income Tax Act, 1961 (Act) was issued to the assessee on 20-08-2009. During the course of assessment, Assessing Officer made additions in the income returned by the assessee inter-alia u/s. 40(a)(ia) on account of short deduction of TDS and u/s. 40(a)(i) on account of non-deduction of tax at source on agency commission. Aggrieved against the assessment order dated 29-12-2010 the assessee preferred an appeal before the CIT(A). The CIT(A) vide order dt. 28-09-2012 deleted the addition made by the Assessing Officer on above two counts and thus partly allowed the appeal of the assessee. Now the Revenue has come in appeal before the Tribunal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee submitted that it is not the case of short deduction of tax on freight charges. The tax has been deducted in accordance with the certificates issued by the tax authorities u/s. 197 of the Act to the respective parties. The Authorised Representative (AR) pointed out that although it is not a case of short deduction of TDS, even otherwise the provisions of Section 40(a)(ia) are not attracted in the case of short deduction of tax. In order to support his contention, the AR relied on the judgment of the Hon ble Calcutta High Court in the case of CIT Vs. S.K. Tekriwal reported as 2012-TIOL-1057-HC-KOL-IT as well as the order of the Mumbai Bench of the Tribunal in the case of Vijay Cotton Fibre Co., Vs. Jt. Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has acted on the basis of certificates produced by the parties to deduct tax at source (TAS) at lower/NIL rate. Therefore, the contention of the ld. DR that the assessee has deducted short TAS is not tenable. Even if the contention of the DR is taken to be correct even then, in view of the judgment of the Hon ble Calcutta High Court in the case of S.K. Tekriwal (supra), subsequently followed by Mumbai Bench of the Tribunal in the case of Vijay Cotton Fibre Co., (supra), the provisions of Section 40(a)(ia) are not attracted in case of short deduction of tax at source. We do not find any infirmity in the findings of the CIT(A) on the issue. Therefore, this Ground of Appeal of the Revenue is dismissed. 6. The second ground of appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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