2019 (7) TMI 1665

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....sallowance of Rs. 19,20,000/- u/s 40(a)(ia) on account of license fees paid to SRK Travels & Tours Pvt. Ltd. 2. That the CIT (Appeals) has in view of the facts and circumstances of the case, has erred in law and on facts in upholding that there is a short deduction of tax by the assessee/appellant on the amount of Rs. 19,20,000/- and erred in upholding the disallowance of the same. 3. That the CIT(A) has failed to appreciate that in fact no TDS was required to be deducted on the amount paid to SRK Tours & Travels Pvt. Ltd. And as such the provisions of section 40(a)(ia) are not applicable 4. That both the lower authorities has failed to appreciate that this is a case where the disallowance is for alleged ....

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.... 10. That the AO erred in law and on facts in charging interest u/s 234B, 234C, 234D, & 244A(3) of the Act. The AO has failed to appreciate that the assessee could have never foreseen these additions being made against the assessee. The above objections are without prejudice to each other. The assessee craves leave to alter, amend or withdraw all or any objections herein or add any further grounds as may be considered necessary either before or during the hearing." 3. The assessee is carrying on the business of Hotels at various properties owned by different owners. The assessee filed return of income for assessment year 2012-13 declaring a total income of Rs. 4,82,98,700/- against the total tax due of Rs. 1,57,76,017/-....

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.... perused the material available on record. The facts in this case are undisputed and we find that the assessee's case is squarely covered by the judgment of the Hon'ble Calcutta High Court in the case of CIT vs. S.K. Tekriwal (supra) wherein the Hon'ble Calcutta High Court had held that in case of any shortfall due to any difference of opinion as to the taxability of any item or nature of payments falling under the various TDS provisions, the assessee can be declared to be the assessee in default u/s 201 of the Act but no disallowance can be made by invoking provisions of section 40a(ia). The Hon'ble High Court of Calcutta observed that the provisions of section 40a(ia) have two limbs; one is where, inter alia, the assessee has to deduct ta....