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Believe nothing, no matter where you read it, or who said it, no matter if I have said it, unless it agrees with your own reason and your own common sense...
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Monday, December 10, 2012

Difference of opinion on account of taxability of any item/nature of payment falling under various TDS provisions- no disallowance can be made u/s. 40 (a) (ia)

"assessee may be an assessee-in default" but penal provision u/s. 40 (a) (ia) cannot be invoked...

I.T.A.T. Mumbai in the case of UE Trade Corp. (India) Ltd. vs. D.C.I.T. has observed and held that, the difference in shortfall was due to the "applicability of provisions. 

The assessee deducted tax at source u/s. 194C, whereas the A.O. were of the opinion that provision of sec-194I would be applicable. Hence, held that assessee is in default as per provisions of sec. 201 but the disallowance of the expenditure was not permissible u/s. 40 (a)(ia) of the I.T. ACT, 1961.

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