TMI Blog2019 (10) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... hortfall in deduction due to any difference of opinion as to the taxability of any item or nature of payments falling under various TDS provisions, the proper course for the revenue is to declare the assessee as an assessee in default u/s 201 of the Act but no disallowance can be made by invoking the provisions of Section 40(a)(ia) of the Act. In these circumstances, while respectfully following t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case, ld. CIT(A) has erred in law and on facts in not deleting the disallowance of ₹ 39,38,400/- made by ld. AO u/s 40(a)(i) and further erred in directing the ld. AO to verify the claim and that too without observing the principles of natural justice. 2. That in any case and in any view of the matter, action of ld. CIT(A) in not deleting the disallowance of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - by making disallowance u/s 40(a)(ia) of the Income-tax Act, 1961 ( the Act ). On this aspect assessment order speaks that during the course of assessment proceedings, ld. AO found that the assessee made short deduction of TDS of ₹ 7,87,680/- on foreign payments, deducted TDS at 4.22% instead of 20% and, therefore, the total payment made by the assessee to the foreign party to the tune of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee effected the TDS at 4.22% on the payment of ₹ 49,92,585/-. 5. In the case of S.K. Tekriwal (supra), Hon ble High Court held that in the case of shortfall in deduction due to any difference of opinion as to the taxability of any item or nature of payments falling under various TDS provisions, the proper course for the revenue is to declare the assessee as an assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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