Case Law Details
Eximius Management Pvt Ltd Vs ADIT (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently adjudicated a significant matter in the case of Eximius Management Pvt Ltd Vs ADIT concerning TDS deduction under section 194J of the Income Tax Act. The issues raised were in relation to the non-deduction of TDS for payment of professional services and the disallowance of Employees Contribution to PF&ESIC.
Analysis:
1. Disallowance of Employees Contribution to PF&ESIC: The ITAT relied on the Supreme Court’s judgment in Checkmate Services Pvt. Ltd. v/s CIT, holding that delayed payment of Employees Contribution to PF&ESIC, even if paid before filing of the return of income, is not an allowable deduction.
2. Non-deduction of TDS under Section 194J: The ground concerning the non-deduction of TDS by the assessee towards payment of audit fees required factual verification. The case was remanded back to the assessing officer to ascertain whether the payee had indeed paid tax on the income and if the assessee was obliged to deduct TDS.
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