{"id":6908,"date":"2013-06-05T14:33:39","date_gmt":"2013-06-05T09:03:39","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=6908"},"modified":"2013-06-05T14:33:39","modified_gmt":"2013-06-05T09:03:39","slug":"apollo-tyres-ltd-vs-dcit-itat-cochin-no-s-40aia-disallowance-for-default-of-short-deduction-of-tds","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/apollo-tyres-ltd-vs-dcit-itat-cochin-no-s-40aia-disallowance-for-default-of-short-deduction-of-tds\/","title":{"rendered":"Apollo Tyres Ltd vs. DCIT (ITAT Cochin)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=1026\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=1026&varname2=apollo_tyres_40_a_ia_TDS_disallowance.pdf'; }, 100)\" ><strong>Click here to download the judgement (apollo_tyres_40_a_ia_TDS_disallowance.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nNo s. 40(a)(ia) disallowance for default of short-deduction of TDS<br \/>\n<\/strong><\/p>\n<p>The assessee made payments to various contractors. Though tax was deducted at source, it was at a rate lower than that prescribed under the Act. The AO &#038; CIT(A) held that as there was a default by the assessee, the expenditure had to be disallowed u\/s 40(a)(ia). On appeal by the assessee to the Tribunal, HELD allowing the appeal:<\/p>\n<blockquote><p>A combined reading of s. 201(1A) and s. 40(a)(ia) shows that while a case of short-deduction of TDS is covered by s. 201(1A), it is not covered by s. 40(a)(ia). There is an obvious omission to include short deduction \/ lesser deduction in s. 40(a)(ia). Therefore, in case of short \/lesser deduction of tax, the entire expenditure whose genuineness was not doubted by the assessing officer, cannot be disallowed (<strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-ms-s-k-tekriwal-calcutta-high-court-no-s-40aia-disallowance-for-short-deduction-tds-default\/\">S.K. Tekriwal<\/a><\/strong> (Cal HC) &#038; <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/dcit-vs-ms-s-k-tekriwal-itat-kolkata-no-s-40aia-disallowance-for-short-deduction-tds-default\/\">Chandabhoy and Jassobhoy<\/a><\/strong> 49 SOT 448 (Mum) followed)<\/p><\/blockquote>\n<div class=\"journal2\">\n<strong>Note<\/strong>: It is also held that foreign currency loss on loan given to a subsidiary for capital purposes is not deductible\n<\/div>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A combined reading of s. 201(1A) and s. 40(a)(ia) shows that while a case of short-deduction of TDS is covered by s. 201(1A), it is not covered by s. 40(a)(ia). There is an obvious omission to include short deduction \/ lesser deduction in s. 40(a)(ia). Therefore, in case of short \/lesser deduction of tax, the entire expenditure whose genuineness was not doubted by the assessing officer, cannot be disallowed (<strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-ms-s-k-tekriwal-calcutta-high-court-no-s-40aia-disallowance-for-short-deduction-tds-default\/\">S.K. Tekriwal<\/a><\/strong> (Cal HC) &#038; <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/dcit-vs-ms-s-k-tekriwal-itat-kolkata-no-s-40aia-disallowance-for-short-deduction-tds-default\/\">Chandabhoy and Jassobhoy<\/a><\/strong> 49 SOT 448 (Mum) followed)<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/apollo-tyres-ltd-vs-dcit-itat-cochin-no-s-40aia-disallowance-for-default-of-short-deduction-of-tds\/\">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":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-6908","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\/6908","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=6908"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/6908\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=6908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=6908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=6908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}