TaxTMI 
TaxTMI 
2019 (1) TMI 1640
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.... by the revenue is as under:- 3. The grounds of appeal raised by the assessee in cross objection is as under:- 4. The brief facts of the case are that the assessee is a company who filed its return of income on 05/10/2010 at nil income. The assessee is engaged in providing back office mortgage processing services to their client being lenders, financial institutions, and law firms. The loan processing is automated through computer software. During the year, the assessee has incurred expenditure under the head allocable Capex Cost for the use of assets such as furniture and fixture, leasehold improvements, air-conditioning unit, DG sets, gym equipments, CCTV etc. The assessee stated that above charge is recovered by its holding company....
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....y and hence as it is a rent for the plant and machinery the TDS is required to be deducted under section 194I of the Act @ 2%. The AO was of the view that the above rent is for the furniture and hence under section 194I tax was required to be deducted @ 10%. The ld Commissioner of Income Tax (Appeals) deleted the disallowances relying on the decision of the Hon'ble Kolkata High Court in the case of the CIT Vs SK Tekriwal wherein it has been held that with regard to the shortfall it cannot assume that there is a default of failure to deduct tax at sources. 6. The ld DR relied upon the order of the ld AO, whereas the ld AR vehemently submitted that the issue is also raised in the cross objection of the assessee that tax is not required to b....
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....othetical and when we have already deleted the addition in the case of the assessee, we do not find it appropriate at this stage to decide it. Assessee is at liberty to raise such question at the appropriate stage but not in this appeal where the assessee has succeeded based on the decision of the co-ordinate bench in assessee's own case. Accordingly, cross objection of the assessee is dismissed. 9. The second ground of appeal of the revenue is against the deletion of the addition of Rs. 1105515/- because of interest on service tax considered as prior period expenses by the assessee. 10. The ld DR submitted that as the interest relates to the Financial Year 2007-08 and 2008-09, it is prior period expenditure and cannot be allowed to the....