2024 (10) TMI 1820

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....short 'the Act') for the A.Y. 2013-14. 2. The Revenue has raised following grounds of appeal : "1. On the facts and in the circumstances of the case and in law, whether the Ld. CIT(A) is correct in deleting the disallowance u/s. 40a(ia) on account of failure to deduct TDS towards payments made on account of architectural fees and construction? 2. On the facts and in the circumstances of the case and in law, whether the Ld. CIT(A) is correct in deleting the disallowance u/s. 40a(ia) made by the AO on account of failure to deduct TDS towards "payments" irrespective of whether it is capital or revenue expenses? 3. On the facts and in the circumstances of the case and in law, whether the Ld. CIT(A) is correct in de....

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.... 3.1 The ld. CIT(A) deleted the above addition on the ground that the assessee did not claim any deduction of the expenditure which were capitalized in the books as work-in-progress. The impugned sum was not debited to the profit and loss account. 4. Before us, the learned Sr. DR relied on the assessment order. However, it was admitted that the impugned amount was not debited to the profit and loss account and was also not claimed as expenditure. Per contra, the ld, Sr.AR pleaded that the provisions of section 40(a)(ia) were not applicable and the ld. CIT(A) rightly deleted the addition. 5. We have carefully considered the issue in hand, respective contentions as also the position of law in this regard. It would be relevant to reprod....

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.... Loss Statement, except minimal administrative expenses. The amount spent for constriction he has been capitalised by the assessee. Since the assessee does not have any business activity, it does not claim any depreciation on the fixed assets. Hence, there is no deduction of the amounts paid within the ambit of sections 30 to 38. The amounts paid to the two parties M/s Studio Mumbai Architecture & Design Pvt. Ltd. and M/s BAP Constructions Pvt. Ltd. Besides, the amounts paid to them have been disclosed by them in their financial statements and have been offered for tax. Hence, there is no loss of revenue on account on non-deduction of TDS by the assessee. The assessee has treated the amount as a capital expenditure. Hence, the treatment ....