The assessee has not deducted tax at source on late fees and service tax . The AO disallowed the amount for failure to deduct tax at source . On appeal CIT(A) affirmed the order of AO. On appeal the Tribunal held that the TDS provisions did not apply to late fees and service tax hence disallowance was not valid . ( ITA .No 1013 /Ahd / 2019 ( Ahd ) dt. 29 -6 – 2022 )( AY. 2013 -14 )
Prithvi Outdoor Publicity LLP v . CIT(A) ( 2022) BCAJ -September – P. 49 ( Ahd)( Trib)
S. 40(a)(ia): Amounts not deductible – Deduction at source – Advertisement expenditure- Late fee and service tax – Disallowance is not valid