TaxTMI 
TaxTMI 
TaxTMI 
2019 (11) TMI 1115
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....Tax Act. 3. The ld.Counsel submitted that the additional ground of appeal be admitted as it is being purely legal issue, goes to the route of the matter and no further enquiry is required for deciding the same as all facts are already on record and issue arises out of impugned order. The ld.Counsel also placed reliance in the case of National Thermal Power Company Ltd. Vs. CIT [1998] 229 ITR 383 (SC). 4. Per contra, the ld.Departmental Representative did not seriously opposed the admission of additional ground. 5. We have considered the facts and material available on record and find that the additional ground is being legal one, hence, same is admitted in the light of decision of Hon'ble Supreme Court in the case of National Thermal Pow....
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....ee was entitled to claim the credit of TDS deducted by the payer. If the legitimate tax has not been deducted by the payee, then the payee would be treated as the assessee in default according to section 201 and the payee/assessee would not be permitted tax credit under the proviso in section 209(1)(d). The ld.Counsel has placed reliance on the decision in the case of DIT(IT) Vs. G.E.Packaged Power Ink, wherein it was held that where the assessee were non-resident companies, entire tax was to be deducted at source of payments made by payer to it then there was no question of payment of advance tax by the assessee, therefore, Revenue could not charge any interest u/s.234B from the assessee. We are therefore of the opinion that the interest u....
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.... deducted, the interest expenditure of Rs. 41,33,062/- was disallowed u/s.40(a)(ia) of the Act. 12. In appeal, it was contended that the interest expenses of Rs. 16,76,232/- were paid to Air Force Naval Housing Board and BHEL which were debited to Profit and Loss Account of the assessee. However, the no disallowance of Rs. 36,63,241/- could not have been made by the AO on this account. The assessee has also filed bifurcation of the interest paid by the assessee. Considering these facts, the ld.CIT(A) observed that the assessee has debited interest of Rs. 16,76,232/- only in the Profit and Loss Account and the balance accounts appearing in RA Bills which were to be adjusted from the advance received from parties or were yet to be paid. The....
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....the order of the Lower Authorities. 15. We have heard the rival submissions and perused the material available on record. We find that the assessee has debited interest of Rs. 16,76,232/- in the Profit and Loss Account which itself states that the interest was paid by the assessee of which TDS was required to be made as per provisions of section 194A r.w. 2(28A) of the Act. We find that the interest is defined u/s.2(28)(A) which says that interest payable on any-money borrowed or that debt incurred this means that the assessee as borrowed and mobilize as mobilization advance and debt was incurred. Therefore, the transactions are duly covered by the provisions of section 2(28A) of the Act, therefore the ld.CIT(A) has rightly held that the i....
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....he audited books of accounts of the assessee shows that the payments are due to the contractors. Therefore, the claim is afterthought, that no TDS is required for disallowance of these payments. Accordingly, based on the submission of the assessee the AO disallowed expenditure of Rs. 6,54,79,350/- on account of non-deduction of TDS as per provision of section 40(a)(ia) of the Act. 18. Being aggrieved, the assessee carried the matter before the ld.CIT(A). However, the ld.CIT(A) made observation that the disallowance of expenses related to payments made to the contractors, hence, the AO has rightly disallowed the same u/s.40(a)(ia). With regard to the contention that as per amended provisions of section 40(a)(ia) the disallowance of 30% tota....