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Tribunal upholds assessee's victory in TDS dispute for 'Wheeling charges' disallowance The Tribunal dismissed the departmental appeal challenging the disallowance of TDS on 'Wheeling charges' under section 40(a)(ia) for the assessment year ...
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Tribunal upholds assessee's victory in TDS dispute for 'Wheeling charges' disallowance
The Tribunal dismissed the departmental appeal challenging the disallowance of TDS on 'Wheeling charges' under section 40(a)(ia) for the assessment year 2008-09. The appeal was based on the previous decisions and the established fact that the issue was already settled in favor of the assessee.
Issues: Disallowance of TDS on 'Wheeling charges' under section 40 (a)(ia) of the Income Tax Act for assessment year 2008-09.
Analysis: The appeal by the revenue challenged the order of the ld. CIT(Appeals) Panchkula dated 14.02.2014, which deleted the disallowance of &8377; 371,52,15,673/- made by the Assessing Officer under section 40 (a)(ia) of the Income Tax Act on account of non-deduction of TDS from 'Wheeling charges'. The Assessing Officer observed that the assessee, a distributor of electricity, had claimed 'wheeling charges' to HVPNL amounting to &8377; 371.52 Crores without deducting TDS. The Assessing Officer disallowed this amount after considering the submission of the assessee.
The assessee contended before the ld. CIT(Appeals) that 'wheeling charges' are not subject to tax deduction at source. The ld. CIT(Appeals) found that the issue was covered in the assessee's own case for previous assessment years and deleted the addition based on previous decisions. The ld. DR relied on the Assessing Officer's order, while the counsel for the assessee referenced previous decisions upheld by the Tribunal.
The Tribunal, after considering the facts and previous orders, found no merit in the departmental appeal. It noted that the order of the ld. CIT(Appeals) dated 04.11.2009, upheld by the Tribunal, confirmed that the assessee was not required to deduct tax at source for wheeling charges and SLDC charges. As the issue was already decided in favor of the assessee in previous judgments, the departmental appeal was dismissed.
Therefore, the departmental appeal challenging the disallowance of TDS on 'Wheeling charges' under section 40 (a)(ia) for the assessment year 2008-09 was dismissed by the Tribunal based on previous decisions and the fact that the issue was already settled in favor of the assessee.
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