TaxTMI 
TaxTMI 
2022 (6) TMI 1338
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....elevant to the Assessment Year 2012-13. 2. The only issue raised by the assessee is that the learned CIT-A erred in confirming the order of the AO by sustaining the disallowance of rent expenses of Rs.3.60 lakhs on account of non-deduction of TDS under the provisions of section 194-I of the Act read with section 40(a)(ia) of the Act. 3. The facts in brief are that the assessee in the present case is an individual and engaged in the trading business of wheat, groundnut, seeds of groundnut. The assessee in the year under consideration has incurred go-down rent expenses amounting to 30,000 per month aggregating to Rs.3.60 lakhs per annum only. As per the assessee, there were 3 owners of the go-down and each one of them was equally sharing th....
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....ed by the order of the learned CIT-A, the assessee is in appeal before us. 8. The learned AR before us filed the written submissions by reiterating the contentions made before the authorities below. On the other hand, the learned DR vehemently supported the order of the authorities below. 9. We have heard the learned DR and perused the materials available on record. As regards the 1st contention of the assessee that the rent was paid to three different parties amounting to Rs.1,20,000 per person and therefore there is no violation of the provisions of section 94-I read with section 40(a)(ia) of the Act, appears to be devoid of any merit. It is for the reason that, the assessee has not discharged the onus by furnishing the necessary detail....
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....e to residents, the entire amount of expenditure on which tax was deductible is disallowed under section 40(a)(ia) for the purposes of computing income under the head "Profits and gains of business or profession". The disallowance of whole of the amount of expenditure causes hardship, especially in case of payment made to a resident in whose case the withholding of tax is only a mode of collection of tax and does not result into final discharge of tax liability." 12. Thus, from the explanatory memorandum it is noted that amendment vide Finance Act, 2014 was brought with effect to remove hardships faced by the assessee. However, it has been given w.e.f. 01-04-2015. Thus, the issue which arises for consideration is whether amendment brought....