"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.
No comments:
Post a Comment