TaxTMI 
TaxTMI 
2026 (9) TMI 2039
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....t passed u/s 143(3) r.w.s. 144C(3) r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 28.11.2023 and 07.02.2024 by the Assessing Officer, Assessment Unit, Income Tax Department (hereinafter referred to as 'ld. AO'). Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience. 2. With the consent of both the parties, the facts pertaining to assessment year 2020-21 are taken up for adjudication and the decision rendered thereon shall apply mutatis mutandis for assessment year 2021-22 also, except with variance in figures. 3. Though the assessee has raised several grounds of appeal before us, the effective issue ....
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....ed 06.04.2023, proposed an adjustment of Rs. 5,37,96,330/- out of the interest payable to APEL. The learned AO thereafter passed the assessment order dated 28.11.2023 under section 143(3) read with sections 144C(3) and 144B of the Act making an addition of Rs. 5,37,96,330/- on account of the said transfer pricing adjustment. The assessee has filed an appeal against the said assessment order before the Ld. CIT(A), which is pending adjudication. 6. Subsequently, an order dated 29.03.2024 was passed under section 201(1)/201(1A) of the Act ("201 Order") by the ITO, Ward Int. Tax 1(1)(1), Delhi ("AO(TDS)"), holding that TDS on the interest paid to APEL ought to have been deducted at the rate of 18.88% (as against 7.5% actually deducted by the....
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....o: i. disallow the entire interest of Rs. 18,65,45,217/- under section 40(a)(i) of the Act; ii. deny carry forward of the interest disallowed under section 94B of the Act; iii. record "clear findings" in the fresh assessment order regarding the components of the disallowance said to be ineligible for carry forward; iv. take steps to initiate penalty proceedings under section 271C of the Act for alleged short deduction of TDS amounting to Rs. 2,12,28,845/-; and v. verify the quantification of brought forward losses for AY 2016-17 to AY 2019-20. Being aggrieved, the assessee has preferred the present appeal. 9. From the above, it could be seen that ld PCIT had invoked revision jurisdiction ef....
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....(2) of the Act being payments made to sub-contractors and it is not a case of non-deduction of tax or no deduction of tax as is the import of section 40a(ia) of the Act. But the revenue's contention is that the payments are in the nature of machinery hire charges falling under the head 'rent' and the previous provisions of section 194I of the Act are applicable. According to revenue, the assessee has deducted tax @ 1% u/s. 194C(2) of the Act as against the actual deduction to be made at 10% u/s. 194I of the Act, thereby lesser deduction of tax. The revenue has made out a case of lesser deduction of tax and that also under different head and accordingly disallowed the payments proportionately by invoking the provisions o....
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....there is a default as the deduction is not as required by or under the Act, but the facts is that this expression, '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'. This section 40(a)(ia) of the Act refers only to the duty to deduct tax and pay to government account. If there is any shortfall due to any difference of opinion as to the taxability of any item or the nature of payments falling under various TDS provisions, the assessee can be declared to be an assessee in default u/s. 201 of the Act and no disallowance can be made by invoking the provisions of section 40(a)(ia) of the....