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of <h1>Tribunal grants appeal for assessee, overturns disallowance, directs TDS credit, and addresses deduction concerns</h1> <h3>M/s. Ray + Keshavan Design Associates Pvt. Ltd., (Now known as BU India Pvt. Ltd.) Versus The Deputy Commissioner of Income Tax, Circle – 12 (4), Bangalore.</h3> M/s. Ray + Keshavan Design Associates Pvt. Ltd., (Now known as BU India Pvt. Ltd.) Versus The Deputy Commissioner of Income Tax, Circle – 12 (4), ... Issues:1. Disallowance of reimbursement of expenses under section 40(a)(i) of the Act.2. Disallowance of car rent expenses under section 40(a)(ia) of the Act.3. TDS credit not granted to the assessee.4. Short deduction at source.Analysis:Issue 1: Disallowance of Reimbursement of ExpensesThe assessee claimed reimbursement of expenses to associated enterprises, which the AO disallowed under section 40(a)(ia) for non-deduction of TDS. The Tribunal allowed this ground, stating that the expenses were for software usage without any transfer of rights, hence not liable for TDS.Issue 2: Disallowance of Car Rent ExpensesThe AO disallowed car rent expenses under section 40(a)(ia) for not deducting TDS under section 194C. The Tribunal found that the payments did not exceed the threshold limit for TDS under section 194I, and directed the AO to delete the disallowance.Issue 3: TDS Credit Not GrantedThe assessee sought TDS credit for expenses where tax was deducted at source. The Tribunal directed the AO to verify and grant the TDS credit based on the evidence provided by the assessee, ensuring proper opportunity for the assessee to be heard.Issue 4: Short Deduction at SourceThe assessee raised a concern about short deduction at source. The Tribunal directed the AO to grant the TDS available to the assessee as per the remand report, thereby allowing this ground raised by the assessee.In conclusion, the Tribunal allowed the appeal filed by the assessee for statistical purposes, addressing each issue raised in the appeal and providing detailed reasoning for the decisions made. The judgment was pronounced on 04th April, 2022, with the Tribunal granting relief to the assessee on various grounds based on the facts and submissions presented during the proceedings.
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