Case Law Details
Patwa Abhikarna Private Limited Vs ACIT (ITAT Indore)
ITAT Indore held that TDS on salary is deductible on the basis of ‘net salary’ i.e. gross salary (-) deduction under Chapter VI-A. Therefore, demanding amount on short-deduction of TDS calculated on gross salary is unsustainable.
Facts-
The assessee has made deduction of TDS out of salary paid to two employees, viz. Mr. Hemant Kumar Patwa and Mr. Jayant Kumar Patwa and the revenue has computed shortage in TDS of Rs. 57640/- and interest thereon Rs. 28,590/-.
The assessee’s submitted that the actual TDS was Rs. 2,05,000/- and Rs. 3,00,000/- out of salary paid to Mr. Hemand Kumar Patwa and Mr. Jayant Kumar Patwa respectively, although the TDS deductible was Rs. 2,71,951/-and Rs. 2,88,390/- respectively. Therefore, according to assessee, the TDS actually deducted was in fact more than the TDS deductible and hence there was no short-deduction.
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