2022 (12) TMI 649

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....learned appellate authority is arbitrary and against law and facts of the case; 2. That the learned Commissioner of Income Tax (Appeals)-28 has been wrongly, arbitrarily and against the law and facts of the case, has confirmed the disallowance of Rs.1,06,17,768/- made on account of lower deduction of tax at source u/s 40(ia) of the I. T. Act, 1961." 3. Brief facts of the case are that, the assessee is engaged in the business of providing digital cable service through local cable operators. The return of income declaring 8,58,741/- was been filed. The assessment proceedings was initiated against the assessee and the order u/s 143(3) of the Income Tax Act, 1961 ('Act' for short) has been passed on 11/07/2018 by disallowing the com....

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....tion (P) Ltd were disallowed in totality, therefore, not considered for making disallowance u/s 40(a)(ia) of IT Act on account of lower deduction of tax at source. During the remand proceedings, it was observed by him that though the aforesaid expenses have been allowed on merit, the provisions of section 40(a)(ia) of IT Act still apply in his case and expenses claimed beyond the permissible limit are not allowable as per the said section. In addition to these two entities, AO found that in respect of another entity namely MSM Discovery (P) Ltd also there was difference of Rs. 16,31,856/- in the amount paid and making TDS than the rate permitted by AO. During the remand proceedings also, such difference was computed by AO at Rs. 59,88,395/-....