TaxTMI 
TaxTMI 
2015 (7) TMI 69
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....Unique Designers, in the relevant assessment year, was engaged in constructing and preparing designs of telecommunication towers located in different parts of India. During the year the assessee was providing consultancy as well as working as sub-contractor for erecting telecommunication towers. Assessee filed her return declaring income of Rs. 8,81,210/-. 2.1. The AO noticed that assessee had claimed soil testing expenses at Rs. 68,87,425/-, out of which work was allocated to sub-contractors for which assessee had paid Rs. 28,50,000/-. The AO noticed that assessee had not deducted tax at source on this amount as required u/s 194C and, therefore, he disallowed Rs. 28,50,000/- u/s 40(a)(ia). 2.2. Ld. CIT(A) deleted the addition following t....
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.... (supra) has not been accepted by the Hon'ble Calcutta High Court and the Hon'ble Gujarat High Court. 4. Ld. Counsel for the assessee filed before us copy of order of Hon'ble Allahabad High Court in the case of CIT Vs. M/s Vector Shipping Services (P) Ltd., dismissing the appeal of the Revenue. He further submitted that the SLP filed by the department against the order of Hon'ble Allahabad High Court has been dismissed. He further referred to the decision of ITAT 'B' Bench Chennai in the case of ITO Vs. M/s Theekathir Press (ITA no. 2076/Mds/2012 dated 9-12-2013), wherein taking into consideration the difference of opinion between various High Courts, the Tribunal following the principle laid down by Hon'ble Supreme Court in the case of CI....
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....ow the claim of even genuine and admissible expenses of the assessee under the head 'Income from Business and Profession' in case the assessee does not deduct TDS on such expenses. The default in deduction of TDS would result in disallowance of expenditure on which such TDS was deductible. In the present case tax was deducted as TDS from the salaries of the employees paid by M/s Mercator Lines Ltd., and the circumstances in which such salaries were paid by M/s Mercator Lines Ltd., for M/s Vector Shipping Services, the assessee were sufficiently explained. It is to be noted that for disallowing expenses from business and profession on the ground that TDS has not been deducted, the amount should be payable and not which has been paid....
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....enses of the assessee under the head 'Income from Business and profession' in case the assessee does not deduct TDS on such expenses. The default in deduction of TDS would result in disallowance of expenditure on which such TDS was deductible". 5.1.1. The SLP filed against the order of the Hon'ble High Court stands dismissed by the Hon'ble Supreme Court: 5.2. As far as the assessee's reliance on the decision of Hon'ble Delhi High Court in the case of Rajinder Kumar (supra) is concerned, the same is not applicable to the facts of the case. In this case the assessee was following cash system of accounting. The AO referred to the account of deduction of tax at source for professional payment as on March 31,2007 and noticed that an amount of ....