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TMI Blog2024 (7) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT, Central Circle-14, New Delhi under Section 143(3) of the Act for Assessment Year 2021-22 whereby and whereunder the addition made under Section 40(a)(ia) of the Act to the tune of Rs. 3,53,55,420/- has been deleted. 2. The controversy arose out of the order passed by the Learned AO in disallowing the amount of Rs. 3,53,55,420/- under Section 40(a)(ia) of the Act on the pretext that the tax was not deducted on payment of commission to the directors as per Section 194H of the Act. On the other hand the appellant has considered this payment as salary and deducted TDS on the same under Section 192 of the Act. 3. At the time of hearing of the instant appeal, the Learned Counsel appearing for the assessee submitted before us that the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of "Professional or technical services" liable to TDS u/s 194J of the Act. Hence the observations made by the Tribunal and the decision given on that issue are not related to the issue under consideration. Hence the Ld CIT(A) was not justified in referring to the provisions of sec.194J of the Act to the commission expenses payable to the whole time directors of the assessee company. Even otherwise, the provisions of sec.194J excludes from its ambit, the commission payments which are liable to TDS u/s 192 of the Act. 7. The impugned commission expenses have been made to the whole time directors and the assessee has deducted TDS on it u/s 192 of the Act, when the payments were actually made in the succeeding year. We noticed that an identi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent and allowed this ground of appeal. 4. Shri Sharma has contended that this payment being commission in nature is covered by Section 194H of the said Act and hence TDS was deductible at the time of making provision at the year end and as Respondent had failed to do so, the same called for disallowance under Section 40(A)(ia) of the said Act. 5. Shri Kapadia tendered copy of Form-16 of CMD which is taken on record and pointed out that Form-16 of the CMD for the Assessment Year 2010-2011 showed that commission was part of overall compensation/salary of the CMD and hence TDS in respect thereof is covered under Section 192 of the said Act. 6. Having considered the memo of appeal and the orders annexed thereto and after hearing Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form rate, and whether the deduction in respect of bonus was granted in the assessment year 1952-53 or in the assessment year corresponding to the accounting year 1952, that is in the assessment year 1953- 54, should be a matter of no consequence to the Department; and one should have thought that the Department would not fritter away its energies in fighting matters of this kind. But, obviously, judging from the references that come up to us every now and then, the Department appears to delight in raising points of this character which do not affect the taxability of the assessee or the tax that the Department is likely to collect from him whether in one year or the other." 4. We further find that the Learned CIT(A) also considered the is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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