2013 (1) TMI 898

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....prakash Meena O R D E R PER RAJENDRA SINGH, AM: These cross appeals are directed against the order dated 3.3.2010 of CIT(A) for the assessment year 2007-08. The only dispute raised in this appeal is regarding disallowance of expenses under section 40(a)(ia) for deducting tax at lower rate. 2. The facts in brief are that the AO during the assessment proceedings noted that the assessee had de....

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....6 deducted tax at lower rate of .25%. The AO, therefore disallowed the sum of ₹ 21,05,580/-. In case of M/s. Devendra Roadways, the AO vide certificate under section 197 dated 21.11.2005, had allowed deduction at lower rate of .56%. The AO observed that the certificate was valid for financial year 2005-06. However, the assessee in respect of payment made of ₹ 21,20,100/- in the month o....

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....deductible at ₹ 6,839/-. Similarly in case of M/s. Shivji Kanji, the assessee had deducted sum of ₹ 21,735/- where tax deductible was ₹ 13,730/-. Thus, in the above two cases the assessee had deducted more tax overall. CIT(A), therefore, deleted the disallowance made in respect of the above party. In case of M/s. Devendra Roadways, CIT(A) found that tax deductible was ₹ 47,....

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.... had been deducted even at lower rate, no disallowance is to be made. Reliance for this proposition was placed on the decision of the Tribunal in the case of DCIT vs. Chandrabhoy & Jassobhoy in ITA No.20/Mum/10 for the assessment year 2006-07 order dated 8.7.2011 and on the judgment of the Hon'ble High Court of Calcutta dated 3.12.2012 in the case of CIT vs. S.K. Tekriwal in Income tax Appeal ....