2015 (2) TMI 1231

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....The appeal is filed by the assessee against the order of CIT(A)-23, Mumbai, dated 15.12.2010, wherein the solitary issue pertains to disallowance made u/s 40(a)(i). 2. The assessee is a builder engaged in the development and construction of residential and commercial projects, through the Project Manager, M/s Godrej Properties Ltd. In 1998, the assessee converted a plot of land at Shivaji Nagar, ....

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.... section 194C. Since no tax has been deducted at source, the AO disallowed Rs. 1,81,29,209/-. 6. Against this finding of the AO, the assessee approached the CIT(A) and submitted that in the relevant provision, as relied upon by the AO, does not include the payment made by the individual. The CIT(A) considering this submissions of the AR held, "While the appellant has not shown sufficient cause ....

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.... section 44 AB, such individual or HUF is liable to deduct income tax under section 194C. The appellant's turnover/gross receipts/total sate, admittedly exceeds Rs. 40 lakhs and the appellant has in fact submitted Tax Audit Report under section 44AB of the I.T. Act. In view of thi5 position, the action of the Assessing Officer in making disallowance under section 40a(ia) for non-deduction of t....