Case Law Details
Hexagon- MIDCO India Private Ltd. Vs CIT Appeals (ITAT Mumbai)
Learned Sr. DR fairly agreed that in case the holding company MIDCO Limited has deducted the TDS on salary paid to these employees no further requirement of TDS on principle but assessee has to produce evidence before the Assessing Officer. Hence, on Principle, we are of the view that once the holding Company MIDCO Limited has deducted TDS on salary to seconded employees, the assessee is not required to deduct TDS on the same salary because there is no markup. Hence, we remit the this issue back to the file of the Assessing Officer just for the purpose of verification that the holding company MIDCO Limited is deducted the TDS and the assessee is able to prove that the holding company MIDCO Limited has deducted the TDS then no disallowance is to be made but assessee has to produce the evidence before the Assessing Officer. In term of the above, the matter is remanded back to the file of the Assessing Officer.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal of assessee is arising out of the order of Commissioner of Income Tax (Appeals)]-4, Mumbai, [in short CIT(A)], in appeal No. CIT(A)-4/e-file-01/DCIT-2(1)(2)/2016-17 dated 05.06.2018. The assessment was framed by the Dy. Commissioner of Income Tax, Circle-2(1)(2), Mumbai (in short DCIT/ AO), for the A.Y 2013-14 vide order dated 29.02.2016 under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the disallowance made by Assessing Officer in regard
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