TMI Blog2017 (9) TMI 1519X X X X Extracts X X X X X X X X Extracts X X X X ..... has not been deducted. Having regard to the binding decision of the Apex Court we are of the view the disallowance made by the A.O. u/s 40(a)(ia) of the Act is in accordance with law and therefore we partly modify the order of the Ld. CIT(A) and hold that irrespective of whether the amount is paid or payable, so long as there is default in deduction of tax at source, provisions of section 40(a)(ia) has to be invoked. - Decided in favour of revenue. - ITA.No.1301/Hyd/2016 And ITA.No.1533/Hyd/2016 - - - Dated:- 28-8-2017 - SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For The Assessee : Shri A. Srinivas For The Revenue : Shri v. Sreekar, DR ORDER PER D. MANMOHAN, VP. These two ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no TDS need to be deducted. 4. Ld. CIT(A) observed that the actual payments by the assessee were only to the tune of ₹ 43,27,828/- whereas the disallowance made by the A.O. was ₹ 45,41,272/-. As regards the payments made to M/s. Ushakiron Movies Ltd, it was explained that out of ₹ 32,17,905/- an amount of ₹ 25,03,777/- was already paid during the year and the balance of amount of ₹ 7,14,128/- is outstanding which is reflected in the balance sheet. As regards the other persons, payments have already been made within the year and therefore it was contended that as per the decision of the Special Bench in the case of Merilyn Shipping and Transport Ltd vs. ACIT (136 ITD 23) no disallowance can be made on paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable even with respect to the payments already made by the assessee. In other words, section 40(a)(ia) can be applied if the amount is paid or payable to any resident on which if the tax is deductible at source but it has not been deducted. Having regard to the binding decision of the Apex Court we are of the view the disallowance made by the A.O. u/s 40(a)(ia) of the Act is in accordance with law and therefore we partly modify the order of the Ld. CIT(A) and hold that irrespective of whether the amount is paid or payable, so long as there is default in deduction of tax at source, provisions of section 40(a)(ia) has to be invoked. 9. In the result, appeal filed by the Revenue is allowed whereas the appeal filed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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