Case Law Details
DCIT Vs RATP Dev Transdev India Pvt. Ltd (ITAT Delhi)
ITAT Delhi held that social security contribution doesn’t constitute income from salary in the hands of expatriate employees. Hence, disallowance u/s 40(ia) for non-deduction of TDS on the same is unsustainable in law.
Facts- The notice u/s 143(2) of the Act were issued and assessment proceedings were initiated against the assessee. The assessment order came to be passed by making an addition of Rs. 2,72,66,619/- being difference between receipts as per 26AS and as per books of accounts/audited accounts, is income of the assessee u/s 28 of the Act, disallowed the miscellaneous expenses car running and maintenance disposal to the tune of Rs. 14,09,500/-, disallowed sum of Rs. 63,57,485/- u/s 40(a)(ia) of the Act due to non deduction of tax at source on salary paid to expats.
As against the assessment order, the assessee has preferred an appeal before the CIT(A). CIT(A) has partly allowed the appeal by deleting the disallowance of Rs. 2,72,66,619/- made by the A.O. u/s 68 of the Act and also deleted the disallowance of Rs. 63,57,485/- made by the A.O. u/s 40(a)(ia) of the Act on non deduction of the tax at source.
Aggrieved by the order of CIT(A), the Revenue has preferred the present appeal.
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