TDS not deductible if payees were not identified

Volvo India Pvt. Ltd. Vs ITO (TDS) (Karnataka High Court) The facts of the said case would indicate that the provisions made at the end of the accounting year were reversed in the beginning of the next year and no payees were identified including the exact amount of liability. In such circumstances, the Tribunal following Karnataka Power Transmission Corporation Ltd.,2 held that the assessee company – M/s. TE Connectivity India Pvt. Ltd., was not liable to deduct tax at source as no income has accrued in the hands of the payee while allowing the appeal. Despite citing the said judgments the ...