Case Law Details
Vodafone India Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that the assessee is not liable to deduct tax at source from the discount paid on prepaid sim card/recharge vouchers. Thus, disallowance made u/s 40(a)(ia) of the Income Tax Act liable to be deleted.
Facts- The assessee is a Cellular Service Provider. The AO passed the draft assessment order by making transfer pricing adjustments made by the Transfer Pricing Officer (TPO) and also various additions. The assessee filed objections against the draft assessment order before Ld DRP. After receipt of the order passed by Ld DRP, the assessing officer has passed this final assessment order, which the assessee is challenging in the present appeal filed before the Tribunal. The revenue is challenging the decision of Ld DRP with regard to deduction claimed u/s 80IA of the Act.
Conclusion- Held that the co-ordinate bench has accepted that the assessee has started claiming deduction u/s 80IA from 2005-06 onwards, meaning thereby, the assessee should be eligible for deduction @ 100%, since the year under consideration would fall within the eligible period for making claim. Further, the AO had rejected the claim for deduction u/s 80IA of the Act on other miscellaneous income. We notice that both the issues are covered by the decision rendered by co-ordinate bench in assessee’s own case in AY 2008-09 in ITA No.6718/mum/2012 dated 08th May, 2023. Thus, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to allow deduction u/s 80IA of the Act.
Held that since the assessee did not earn any exempt income, the question of making disallowance u/s 14A of the Act will not arise as per the decision rendered by co-ordinate benches in the earlier years. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the disallowance made u/s 14A of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
