2020 (10) TMI 81

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....ase, the CIT(A) is correct in law in deleting the disallowance u/s 40(a)(ia) even though the payment was done without deducting TDS ? 2.Whether, on the facts and circumstances of the case, the CIT()A) is correct in law in deleting the disallowance u/s 40(a((ia) even though the payment was made to payment gateway companies which are not covered under the Notification No. 56/2012, dated 31/12/2012. 3.Any other ground that may be urged during the course of appellate proceedings." 2. Brief facts of the case are that the assessee-company which is in the business of developing and running online game on its own web portal www.ace2three.com, filed its return of income on 30/09/2015 declaring total income of Rs. 67,36,51,110/- ....

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....erred an appeal before the CIT(A), who deleted the disallowance made by the AO u/s 40(a)(ia) of the Act, and against the relief granted by the CIT(A), the revenue is in appeal before us. 4. This case was taken up for hearing on 15/09/2020 through video conferencing and both the parties were heard. 5. The ld. DR supported the order of the AO and submitted that the payment retained by the Gateways was, in fact, commission paid by the assessee to Gateways and, therefore, the provisions of section 194H are applicable and the assessee ought to have deducted tax at source under the said section and for failure to do so, the provisions of section 40(a)(ia) has been rightly invoked by the AO. He, therefore, prayed for restoration of the asses....