2015 (8) TMI 210

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....nd production of mineral oils world wide. It has entered into agreement with ONGC together with MEC Ltd. and Shiv-Vani Oil and Gas Exploration Services Ltd. for rendering services on a turnkey basis for CBM development in Central Parbatpur Jharia, Jharkhand and Pilot Wells, in Jharia, Bokaro and North Karanpura Blocks. It filed its return of income electronically on 30.9.2009 declaring loss of Rs. 12,91,33,127/-. The assessment was completed determining total income at Rs. 32,15,98,116/-, by disallowing an amount of Rs. 44,97,41,405/- u/s 40a(ia) of the Act, on the ground that tax should have been deducted at source u/s 194J of the Act instead of s.194C done by the assessee. In other words, the disallowance was made on the ground that there....

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....ra, the Ld.Counsel for the assessee. 5. On a careful consideration of the facts and circumstances of the case, on perusal of orders of lower authorities, material on record and case laws cited, we hold as follows. 6. We find that deletion of disallowance is challenged before us on the ground that TDS is not made at the correct rate as per the S.194J. This issue is no more res integra. This Bench of the Tribunal in its order in ITA no.2429/Del/2011 for AY 2008-09 in the case of M/s. Solutions Inforsystems Pvt.Ltd. vide order dt. 12.12.2013, at para 9 has held as follows.  "9. In ground no.2 the issue is whether deduction u/s 40(a)(ia) can be made when tax has been deducted at source u/s 194C instead of 194J. This Bench of the Tribuna....

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.... is dismissed." We find no substantial question of law is involved in this case and therefore, we refuse to admit the appeal. Accordingly, the appeal is dismissed." The assessee further relied on the following decisions: DCIT v. Chandabhoy & Jossobhoy (ITA no. 20/Mum/2010(Mum.) UE Trade Corporation (India) Ltd. V. DCIT 28 Taxmann.com 77 (Del.) and other cases. As this is not a case of non-deduction of tax but a case where tax has been deducted at a lower rate that too under the bona fide belief that deduction was properly made, we accept the contention of the assessee. Respectfully following the judgement of the Hon'ble Calcutta High Court in the case of S.K.Tekrisal (supra) this ground is allowed deleting the disallowance made u/s 40(a)(....