Case Law Details
Umananda Rice Mill Ltd Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that disallowance under section 40a(ia) of the Income Tax Act for non-deduction of TDS untenable if payee has duly disclosed the receipt of the impugned payment in their return of income.
Facts-
The assessee has paid documentation charges consisting of freight and transportation charges of Rs. 6,24,709/- to Satyam Services on which tax was not deducted at source as required by the provisions of Section 194C of the Act. Accordingly a show cause notice was issued to the assessee as to why the disallowance should be made u/s 40a(ia) of the Act which was replied by the assessee’s Counsel before the AO by submitting that the said payment has duly been shown as income by Satyam Services in its return of income for AY 2011-12 and has paid tax accordingly. The assessee relied on the decision of Hon’ble Apex Court in the case of Hindusthan Coca Cola Beverages Pvt. Ltd. vs. CIT Appeal (civil) 3765 of 2007 wherein it has been held that no disallowance is required to be made as due tax has already been made under the Act by the recipient of income.
CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
Please send me email of daily basis