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TMI Blog2022 (12) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst law and facts of the case; 2. That the learned Commissioner of Income Tax (Appeals)-28 has been wrongly, arbitrarily and against the law and facts of the case, has confirmed the disallowance of Rs.1,06,17,768/- made on account of lower deduction of tax at source u/s 40(ia) of the I. T. Act, 1961." 3. Brief facts of the case are that, the assessee is engaged in the business of providing digital cable service through local cable operators. The return of income declaring 8,58,741/- was been filed. The assessment proceedings was initiated against the assessee and the order u/s 143(3) of the Income Tax Act, 1961 ('Act' for short) has been passed on 11/07/2018 by disallowing the commission paid to working Directors aggregating to Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making disallowance u/s 40(a)(ia) of IT Act on account of lower deduction of tax at source. During the remand proceedings, it was observed by him that though the aforesaid expenses have been allowed on merit, the provisions of section 40(a)(ia) of IT Act still apply in his case and expenses claimed beyond the permissible limit are not allowable as per the said section. In addition to these two entities, AO found that in respect of another entity namely MSM Discovery (P) Ltd also there was difference of Rs. 16,31,856/- in the amount paid and making TDS than the rate permitted by AO. During the remand proceedings also, such difference was computed by AO at Rs. 59,88,395/-, Rs. 37,33,001/- and Rs. 8,96,372/- respectively against the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled to deduct tax at source and also failed to fulfill the conditions as per section 201(1) of the Act on the aforesaid payments made to three entities, therefore, the expenses are not allowable as per provisions of Section 40(a)(ia) of the Act. I therefore, confirm the disallowance of Rs. 1,06,17,768/- made by A.O and dismiss the ground taken by the appellant." 9. On going through the findings recorded by the Ld. CIT(A) we do not find any infirmity or error in the above findings and conclusion of the Ld. CIT (A). Moreover, the assessee has failed to give any reason for not fulfilling the conditions envisaged by Section 201(1) of the Act. Thus, the assessee has failed to deduct the TDS and also fail to fulfill the conditions as per Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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