INCOME TAX ACT, 1961,

Sections 40(a)(ia), 194C & 194J

Business disallowance under section 40(a)(ia) - Payment of carriage fees - Short deduction of tax -

Assessee debited an amount as carriage fees under head Distribution Expenses. The assessee had deducted TDS against the same @ 2% under section 194C. AO opined that the same being technical services attracted higher TDS @10% under section 194J. Therefore, disallowance was made under section 40(a)(ia) in respect of short deduction of tax, but CIT(A) deleted the disallowance. Held: In case of shortfall due to any difference of opinion as to taxability of any item or nature of payments falling under various TDS provisions, no disallowance could be made by invoking provisions of section 40(a)(ia). The CIT(A) had deleted the disallowance by holding that it was not the case of 'no TDS' but the case of 'less TDS', therefore, the disallowance made by the AO was bad in law. Further that, issue of making disallowance under section 40(a)(ia) for short deduction of tax at source was squarely covered by decision of this Tribunal rendered in ACIT v. M/s. T.V. Vision Ltd. in (ITA No. 3387/MUM/2016, dt. 28-2-2018) wherein co-ordinate Bench decided the issue in assessee's favour. Thus, the disallowance was rightly deleted by the CIT(A).

Relied:ACIT v. M/s. T.V. Vision Ltd. in (ITA No. 3387/MUM/2016, dt. 28-2-2018)

REFERRED : CIT v. S. K. Tekriwal (2011) 48 SOT 515 (Kol) : 2011 TaxPub(DT) 1971 (Kol-Trib); CIT v. M/s. Star Den Media Services (P) Ltd (ITA No 1413/MUM/2014); Chandabhoy & Jassobhoy v. DCIT (2012) 49 SOT 448 (Mum) : 2011 TaxPub(DT) 2185 (Mum-Trib);CIT v. M/s. UTV Entertainment Television Ltd. (2017) 399 ITR 443 (Bom) : 2017 TaxPub(DT) 4885 (Bom-HC); CIT v. Kishore Rao & Ors. (Huf) (2016) 387 ITR 196 (Karn-HC); CIT-1, Kochi. v. M/s. PVS Memorial Hospital Ltd. (2016) 380 ITR 284 (Ker) : 2015 TaxPub(DT) 3001 (Ker-HC);

FAVOUR : In assessee's favour

A.Y. : 2012-13

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