{"id":3824,"date":"2011-10-29T05:33:24","date_gmt":"2011-10-29T05:33:24","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=3824"},"modified":"2011-10-29T05:44:35","modified_gmt":"2011-10-29T05:44:35","slug":"dcit-vs-ms-s-k-tekriwal-itat-kolkata-no-s-40aia-disallowance-for-short-deduction-tds-default","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/dcit-vs-ms-s-k-tekriwal-itat-kolkata-no-s-40aia-disallowance-for-short-deduction-tds-default\/","title":{"rendered":"DCIT vs. M\/s. S. K. Tekriwal (ITAT Kolkata)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=535\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=535&varname2=tekriwal_40_a_i_short_TDS_default.pdf'; }, 100)\" ><strong>Click here to download the judgement (tekriwal_40_a_i_short_TDS_default.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nNo s. 40(a)(ia) disallowance for short-deduction TDS default<br \/>\n<\/strong><\/p>\n<p>The assessee paid Rs. 3.37 crores as &#8220;<em>machine hire charges<\/em>&#8221; on which it deducted TDS u\/s 194C at 1%. The AO held that the payment was &#8220;<em>rent<\/em>&#8221; and TDS ought to have been deducted at 10% u\/s 194-I. He disallowed the expenditure u\/s 40(a)(ia). This was reversed by the CIT (A). On appeal by the department, HELD dismissing the appeal:<\/p>\n<blockquote><p>S. 40(a)(ia) provides for a disallowance if amounts towards rent etc have been paid <em>without deducting<\/em> tax at source. <strong><em>It does not apply to a case of short-deduction of tax at source<\/em><\/strong>. As the assessee had deducted u\/s 194C, it was <em>not a case of &#8220;non-deduction&#8221;<\/em> of TDS. If there is a shortfall due to difference of opinion as to which TDS provision would apply, the assessee may be treated as a defaulter u\/s 201 but no disallowance can be made u\/s 40(a)(ia). (<strong>Chandabhoy &#038; Jassobhoy<\/strong> (ITAT Mumbai) followed &#8211; <em>included in file<\/em>)<\/p><\/blockquote>\n<div class=\"journal2\">\nFor more see <strong><a href=\"http:\/\/www.itatonline.org\/articles_new\/index.php\/the-law-of-tds-us-194c-controversies-solutions\/\">The Law of TDS u\/s 194C: Controversies &#038; Solutions<\/a><\/strong> by Shri. K. C. Singhal, VP, ITAT (Retd)\n<\/div>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 40(a)(ia) provides for a disallowance if amounts towards rent etc have been paid <em>without deducting<\/em> tax at source. <strong><em>It does not apply to a case of short-deduction of tax at source<\/em><\/strong>. As the assessee had deducted u\/s 194C, it was <em>not a case of &#8220;non-deduction&#8221;<\/em> of TDS. If there is a shortfall due to difference of opinion as to which TDS provision would apply, the assessee may be treated as a defaulter u\/s 201 but no disallowance can be made u\/s 40(a)(ia). (<strong>Chandabhoy &#038; Jassobhoy<\/strong> (ITAT Mumbai) followed &#8211; <em>included in file<\/em>)<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/dcit-vs-ms-s-k-tekriwal-itat-kolkata-no-s-40aia-disallowance-for-short-deduction-tds-default\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-3824","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-tribunal"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=3824"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3824\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=3824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=3824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=3824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}