TMI Blog2017 (5) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... sions in subsequent years and deducted TDS from actual payment as per law and deposited the same. If this is so, the assessee could not be required to deposit the same again by raising this demand. Therefore, we direct Ld. AO to verify the fact that whether the assessee, in subsequent years, has reversed the said amounts and deducted the due TDS at the time of actual payment and deposited the same to the credit of central government. If so, the said demand of ₹ 3,12,776/- raised u/s 201(1) shall stand deleted. So far interest u/s 201(IA) is concerned, we find that the assessee is liable to pay the same since we have already noted that the expenses against which TDS was deductible was not mere provisions and the payees were identifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esulted into raising of impugned demand of ₹ 3,12,776/- against the assessee u/s 201(1) and consequential interest demand @1% for 36 months u/s 201(1A) amounting to ₹ 1,12,598/-. Both the demands were contested before Ld. CIT(A) where the assesse contended that these were mere adhoc provisions only on estimated basis without there being any specific entries in the respective ledger accounts of the payee. Further, the assessee reversed the said provisions in the succeeding years and deducted due TDS whenever actual payments of rent / professional fees were credited / paid by him to respective payees. Moreover, the respective payees were not identifiable / not available with the assessee at the time of making provisions and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BM India Private Limited Vs ITO TDS [ITAT Bangalore ITA No. 749 to 753/Bang/2012 order dated 14/05/2015] 4. Per contra Ld. DR placed reliance on the findings of Ld.CIT(A) and asserted that the impugned expenses were not mere provisions rather the assessee failed to deduct TDS against the same and rightly been treated as assessee-in-default. 5. We have heard the rival contentions and perused the relevant material on record including the cited case laws. First of all, we find that assessee in his computation of income has suo-moto made the disallowance of said expenditure u/s 40(a)(ia). Further, the nature of expenses is Rent Professional Expenses. Therefore, so far as the argument that these were mere provisions is difficult to acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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