2021 (9) TMI 796

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.... deleting the disallowance of Rs. 3,45,00,000/- made on account of non-deduction of TDS which is in violation of Section 40(a)(ia) read with Section 194-IA of the Income Tax Act, 1961 by the AO." 3. Brief facts of the case are that the assessee filed its return of income on 30.11.2014 declaring an income of Rs. 3,26,12,830/-. The assessee company is a joint venture company formed by Caparo Vehicle Products India Ltd. and Wartsilla. During the assessment proceedings, the assessee has advanced an amount of Rs. 3,45,00,000/- to M/s Caparo Vehicle for purchase of land. The AO made addition of this amount paid by the assessee as no TDS u/s 194IA of the Income Tax Act, 1961 has been deducted. 4. The exact portion of the order of the AO is r....

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....in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2; (b) "immovable property" means any land (other than agricultural land) or any building or part of a building." 6. Further, Section 40(a)(ia) reads as under: "Section 40(a)(ia) (ia) thirty per cent of any sum payable to a resident, on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in sub-section (1) of section 139 : Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in s....