Assessee made contribution to Turf Authorities of India for conducting an event. Assessing Officer disallowed the payment for failure to deduct tax at source. Held that since payments were made before event to meet expenses to conduct event, said contributions would not attract TDS and disallowances made by Assessing Officer were to be deleted. Assessee provided different kind of subsidies to promote horse racing as part of its objectives. AO made disallowances on ground that assessee failed to deduct TDS on said payments. Held that since AO failed to point out sections under which assessee would be liable to deduct tax at source, said disallowances were to be deleted. (AY. 2013-14
Mysore Race Club Ltd. v. ACIT (2022) 196 ITD 140 (Bang.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contribution to Turf Authorities of India for conducting an event-Meet expenditure-Not liable to deduct tax at source-Subsidies to promote horse racing-Failure to mention which section of TDS provision is applicable-Addition was deleted.