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| The Tax Publishers2019 TaxPub(DT) 2924 (Del-HC) INCOME TAX ACT, 1961
Section 40A(1A)
Where the payee reflected the alleged amount as its tax liability in its return, AO was not justified in disallowing deduction of the said payment made by assessee to such payee under section 40A(1A) for failure to deduct tax at source thereon.
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Business disallowance under section 40A(1A) - Payments liable to deduction of tax at source - Payee reflecting amount in returns as tax liability -
AO disallowed deduction of payment made by assessee-company to Delhi Transport Corporation (DTC) under section 40A(1A) for failure to deduct tax at source thereon. Held: In view of the High Court decisions in the cases of CIT v. Rajinder Kumar 2013 TIOL 547: 2013 TaxPub(DT) 1875 (Del-HC) and CIT v. Ansal Land Mark Township Pvt. Ltd. (2015) 377 ITR 365 (Delhi): 2015 TaxPub(DT) 3482 (Del-HC), the order of AO disallowing deduction of payment made by assessee to DTC for failure to deduct tax at source thereon was set aside on the ground that the payee, i.e., the DTC reflected the said amount as its tax liability in its return.
Followed:CIT v. Rajinder Kumar 2013 TIOL 547: 2013 TaxPub(DT) 1875 (Del-HC), CIT v. Ansal Land Mark Township Pvt. Ltd. (2015) 377 ITR 365 (Delhi): 2015 TaxPub(DT) 3482 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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