Case Law Details
Onkareshwar Properties (P) Ltd. Vs ACIT (ITAT Delhi)
Conclusion: No disallowance u/s 40(a)(ia) could be made for non deduction of TDS on bank commission / guarantee fee as CBDT vide Circular No. 56/2012 had clarified that no TDS was required to be deducted on bank guarantee commission, etc. and the same was retrospective applicable.
Held: AO had made disallowance on the ground that assessee should have deducted TDS on bank commission / guarantee fee and held that CBDT Circular No. 56/2012 was only applicable from 1st January, 2013. It was noted that CBDT had clarified that no TDS was required to be deducted on bank guarantee Commission, etc. Such a circular was brought to reduce the hardship and the compliance cost of assessee. Once a benevolent circular had been issued to remove the hardship for assessee then it could not he held that any such payment made prior to the said circular which was causing hardship to assessees should continue. Thus, the said circular was applicable retrospectively and accordingly, no disallowance u/s 40(a)(ia) could be made for non deduction of TDS. I
FULL TEXT OF THE ITAT JUDGEMENT
The aforesaid appeal has been filed by the assessee against impugned order dated 22.1.2015, passed by CIT(Appeals)-7 Delhi for the quantum of assessment passed u/s 143(3) for the assessment year 2011-12. In the grounds of appeal the assessee has challenged following three additions:-
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