2021 (8) TMI 156

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....covery and collection agent on behalf of certain banks. He filed return of income on 25.02.2013 declaring income of Rs. 10,88,200/-. Assessment u/s. 143(3) of the Income-tax Act, 1961 ("the Act") was, however, complete at an income of Rs. 2,05,43,440/- by making several additions. 3. Aggrieved by such additions, assessee preferred appeal before the ld. CIT(A) and by way of the impugned order, ld. CIT(A) granted partial relief to the assessee by deleting certain additions and remitting the amounts in respect of certain additions. In so far as this appeal is concerned, the relevant additions sustained by the CIT(A) are- (i) Rs. 3,98,932/- u/s. 40(a)(ia) on account of non-deduction of TDS u/s. 194J on consultation expenses incurred by the a....

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.....2015, the disallowance of expenses on account of non deduction of TDS should be restricted to 30% of the expenses in view of the fact that the amendment made by the Finance Act (2) to section 40(a)(ia) is curative in nature and is, therefore, also applicable to the assessment year under consideration. He submits that though this amendment is w.e.f. 01.04.2015, but the judicial authorities held it to be curative in nature and retrospective. He placed reliance on various Tribunal orders in the cases of M/s. R.H. International Vs. ITO (ITA No. 6724/Del/2018) dated 20.03.2019, Rajendra Yadav Vs. ITO for the A.Y. 2007-08 order dated 29.01.2016 (Jaipur Bench), Smt. Kanta Yadav Vs. ITO (ITA No. 6312/Del/2016) dated 12.05.2017 and Umaxe Projects (....

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.... 8. Now, coming to ground No. 2, the assessment order speaks that towards recovery sub-agents expense, the assessee incurred an expenditure of Rs. 1,30,71,097/-, but the assessee failed to furnish the details thereof. Assessing Officer, therefore, disallowed a sum of Rs. 1,30,71,097/- for non-compliance of section 194H and consequently disallowed it u/s. 40(a)(ia) of the Act. Learned CIT(A) noted that out of 144 employees in respect of whom the salary expense of Rs. 1,30,71,097/- was said to have been incurred, the ICICI Bank stated that 60 persons rendered service. Learned CIT(A) allowed such an expense to the tune of Rs. 90,86,180/-. However, learned CIT(A) noted that about 42 other persons were drawing a salary around Rs. 15000/- per mon....