2023 (11) TMI 856

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....-Ld.DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 24-05-2023 in the matter of an order passed by Ld. Assessing Officer [AO] u/s. 201 (1) / 201(1A) of the Act on 21-03-2023 raising certain demand....

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....ction of AO. Though levy of interest is consequential, but it should be deleted. [Tax Effect: Rs. 10,84,045] 2. The Ld. AR advanced arguments and placed on record the details of rental payments made by the assessee. It was the submission of Ld. AR that the rental payment, in each of the case, did not exceed the threshold limit of Rs. 1.80 Lacs and therefore, the assessee was not obligated to dedu....

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.... The assessee paid rent of Rs. 42.36 Lacs and deducted Tax at source u/s 194I. However, no tax was deducted on rental payment of Rs. 112.92 Lacs on the ground that the payment to each of the party was below threshold limit of Rs. 1.80 Lacs. Since the assessee could not furnish the supporting documents, Ld. AO made applicable disallowance of 30% u/s 40(a)(ia). 4. As a consequence of above assessme....

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....efore, the assessee was not liable for TDS on these payments considering the provisions of Sec.194I. Keeping in mind the nature of assessee's business, the assessee may be temporality hiring the godown and may not be successful in furnishing adequate documentary evidences to the satisfaction of lower authorities. For that lapse, the assessee has already suffered disallowance u/s 40(a)(ia). But, ne....