{"id":30623,"date":"2022-10-30T15:33:09","date_gmt":"2022-10-30T10:03:09","guid":{"rendered":"https:\/\/itatonline.org\/digest\/volvo-india-pvt-ltd-rep-by-its-managing-director-sri-kamal-bali-v-ito-tds-2022-210-dtr-299-327-ctr-299-karnhc\/"},"modified":"2022-10-30T15:33:09","modified_gmt":"2022-10-30T10:03:09","slug":"volvo-india-pvt-ltd-rep-by-its-managing-director-sri-kamal-bali-v-ito-tds-2022-210-dtr-299-327-ctr-299-karnhc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/volvo-india-pvt-ltd-rep-by-its-managing-director-sri-kamal-bali-v-ito-tds-2022-210-dtr-299-327-ctr-299-karnhc\/","title":{"rendered":"Volvo India Pvt. Ltd. (Rep by its Managing Director Sri Kamal Bali) v. ITO (TDS) (2022) 210 DTR 299 \/ 327 CTR 299 (Karn)(HC)"},"content":{"rendered":"<p>The assessee created head wise provisions of expenses on <em>adhoc<\/em> basis in respect of various services received to facilitate closing of its books without reference to any particular party. Such excess amounts of provisions created got reversed subsequently. No tax deduction at source was made in respect of such provisions. The Income Tax Officer initiated proceedings under Section 201(1)\/201(1A) of the Act considering the assessee to be \u2018an assessee in default\u2019 in respect of the amount of tax which was not deducted at source on such provisions. On appeal CIT(A) and Appellate Tribunal upheld the action of the Income Tax Officer.\u00a0 On further appeal by the assessee, Hon\u2019ble Karnataka High Court held that non-identification of the payees in the provisions and the disallowance of deduction expenditure under Section 40(a)(ia) of the Act has not been rightly appreciated by the Tribunal. Further, if the deduction is not claimed for the expenditures made in the provision even in the return submitted and the same is offered to tax in the subsequent year after reversing the entries pursuant to the receipt of the bills\/invoices by the payees, the matter has to be analysed having regard to, whether income has accrued to the payees to deduct tax at source. \u00a0(AY. 2012-12,\u00a0 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 201: Deduction at source &#8211; Failure to deduct or pay &#8211; assessee made ad-hoc provisions of expenses in respect of various services received to facilitate closing of the books without reference to any particular party &#8211; No deduction towards the expenditure was claimed under these provisions \u2013 Proceedings under section 201 \/ 201(1A) unjustified. [S. 40(a)(ia)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":""},"categories":[21],"tags":[],"class_list":["post-30623","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7XV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=30623"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30623\/revisions"}],"predecessor-version":[{"id":30624,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30623\/revisions\/30624"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=30623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=30623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=30623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}