2018 (4) TMI 189

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....se are that assessee was directed to file details of the expenses debited to P & L A/c under the Head "Professional Charges". In compliance, the assessee submitted copy of some vouchers for payment of professional charges. A.O. noted that assessee has paid all the professional charges in cash and no TDS has been deducted by the assessee on these payments. The assessee was asked to explain the reasons for the same as to why payments are made in cash. The assessee explained that she has not deducted tax on the professional charges paid to different persons because all the payments are below the tax deductible limit i.e., Rs. 20,000/- and as such provisions of TDS would not apply. The A.O. noted that assessee has paid amount of Rs. 35,97,470 u....

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....TDS was deducted because payments were below Rs. 20,000/-. It was explained that assessee is running proprietary concern and is providing I.T. related service and is also registered with Industries Department of Government of Himachal Pradesh. The assessee was providing full range of I.T./BPO Services to international consulting organisations who are providing financial consultancy, market research, cost analysis and industry forecast. It was submitted that assessee's job required data to be collected from various sources such as annual reports, websites, company representations and data bases available on the internet. The assessee is providing such services to multinationals like M/s. McKinzle & Co. and M/s. Visual Graphics. It was submit....

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....unts of major expenses debited in the trading and P&L A/c. and further details with regard to payment of salary, wages, commission and expenses on foreign travel in prescribed proforma, wherein it was asked of the assessee as to whether these payments were subject to TDS. All these details were supplied by the assessee vide letter which has been placed on the assessment record. The case was reopened as a result of an audit observation with regards to nondeduction of TDS on professional charges debited in the P&L A/c. amounting to Rs. 35,97,470/- and the applicability of Section 40(a)(ia) on the same. Furthermore, after consideration of all the facts of the case and the documents available on record and the written submissions given by the I....

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....terated the submissions made before the authorities below. 6. After considering the rival submissions, we do not find any merit in the departmental appeal. The Ld. CIT(A) on perusal of the assessment record found that original assessment was completed under section 143(3) vide order dated 24.11.2011. During the course of original assessment proceedings, A.O. asked for the copies of the bank statement and business activities and details of payments, on which, tax at source deducted/deductible but not deducted and also copies of the major expenses in prescribed proforma. The assessee submitted all the details before A.O. The case was reopened as a result of audit observation with regard to non- deduction of TDS on professional charges. It ....