TMI Blog2022 (6) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... t in view of proviso added by way of amendment in section 40(a)(ia) and insertion of second proviso which provides that in case the recipient has included the receipts in their income, no disallowance u/s. 40(a)(ia) - HELD THAT:- As assessee made statement at bar that the recipient has included the receipts in their return of income in regard to these expenses on which assessee has not deducted TD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 2011-12. ITA No. 1461/Chny/2017 2. During the course of hearing before us, the learned AR for the assessee pointed out that the tax effect in this appeal is Rs. 48,59,097/-, which is below Rs. 50.00 lakhs. The learned AR for the assessee further submitted that in view of the CBDT Circular No. 17/2019, dated 08.08.2019 brought out by the Central Board of Direct Taxes, Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the action of AO in disallowing purchase expenses treating that as royalty payments and accordingly non-deduction of TDS u/s. 194J of the Act and thereby applying the provisions of section 40(a)(ia) of the Act. For this, assessee has raised various grounds which are arguments and hence need not be reproduced. 5. Brief facts are that the AO on perusal of statement of valuation of clo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 194J of the Act at the time of payment of royalty. The AO noted that this royalty payment of Rs. 1,74,21,093/- paid to Tami Ltd., without deducting TDS u/s. 194J of the Act is disallowed by invoking the provisions of section 40(a)(ia) of the Act. Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) also confirmed the action of AO. Aggrieved, now assessee is in appeal before the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome and the AO after verifying the same can decide the claim of assessee. 7. In view of the above fact that the assessee made statement at bar that the recipient has included the receipts in their return of income in regard to these expenses on which assessee has not deducted TDS, in term of second proviso to section 40(a)(ia) of the Act, we remit the matter back to the file of AO, who will c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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