Case Law Details
M/s. Power Max (India) Pvt. Ltd. Vs DCIT (ITAT Kolkatta)
It is observed that the disallowance under section 40(a)(ia) to the extent of Rs. 22,46,041/- and Rs. 56,81,220/- was made by the AO on account of short deduction of tax at source by the assessee from the relevant payments. In the case of DCIT vs S.K. Tekriwal 260 CTR 76 cited by the learned counsel for the assessee, Hon’ble Kolkata High Court has held that section 40(a)(ia) of the Act refers only to the duty to deduct tax and pay to government account. Explaining further, it was observed by the Hon’ble Kolkata High Court that if there is any shortfall due to any difference of opinion as to the taxability of any items or the nature of payment falling under various TDS provisions, the assessee can be declared to be an assessee in default under section 201 of the Act, but no disallowance can be made by invoking the provisions of section 40(a)(ia) of the Act. Respectfully following the said decision of Hon’ble Jurisdictional High Court, we delete the disallowance made by the A.O. u/s 40 (a) (ia) and confirmed by the Ld. CIT(A) to the extent of Rs. 22,46,041/- and Rs. 56,81,220/-.
FULL TEXT OF THE ITAT JUDGMENT
This appeal filed by the assessee is directed against the order of Ld. CIT(A) – 18, Kolkata dated 19.12.2016.
2. At the time of hearing before the Tribunal, the learned counsel for the assessee has not pressed ground no 1 raised in the appeal of the assessee. It is also noted that ground no 4 raised by the assessee in this appeal in general which does not call for specific adjudication.
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