2017 (5) TMI 973

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....ax Act for non-deduction of TDS on certain payments and consequential levy of interest u/s 201(1A) for Rs. 1,12,598/-. 2. Briefly stated, the assessee, being resident corporate assessee engaged in providing skincare services and holding TAN-MUMK-13061- G, was subjected to an order u/s 201(1) read with section 201(1A) of the Income Tax Act, 1961 vide Assessing Officer [AO] order dated 26/03/2014. The Ld. AO, upon perusal of Tax Audit Report for impugned AY, noticed that the assessee made provision of Rent & Professional fees amounting to Rs. 14,41,875/- & Rs. 16,85,877/- respectively but failed to deduct TDS of Rs. 1,44,188/- and Rs. 1,68,588/- from the said payment which resulted into raising of impugned demand of Rs. 3,12,776/- against ....

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....(a)(ia) as the liability in respect thereof had not crystallized and therefore, the question of TDS did not arise at all and the lower authorities have erred in treating the assessee as assessee-in-default. Reliance has been placed on following judicial pronouncement for various contentions:- (i) DIT Vs Ericsson Communications Ltd [Delhi High Court ITA 106/2002 order dated 04/09/2015] (ii) Karnataka Power Transmission Corporation Ltd. Vs. DCIT [Karnataka High Court 67 Taxmann.com 259 02/02/2016] (iii) Alliance Media & Entertainment Ltd. [ITAT Mumbai 79 Taxmann.com 114 08/02/2017] (iv) IDBI Vs ITO [ITAT Mumbai 107 ITD 0045 31/07/2006] (iv) IBM India Private Limited Vs ITO TDS [ITAT Bangalore ITA N....