LEASE PLAN INDIA P.LTD.,NEW DELHI vs. ITO, WARD-4(3), NEW DELHI

PDF · subscribers
ITA 4712/DEL/2017Status: DisposedITAT Delhi16 February 2022AY 2011-129 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, following its own previous decision on identical facts, directed the AO to delete the impugned disallowances. The Tribunal found parity of facts with earlier years where the issue was decided in favor of the assessee.

What were the facts?

The assessee made payments as reimbursement of guarantee charges without deducting tax at source. The Assessing Officer (AO) invoked Section 40(a)(ia) and made disallowances for two assessment years.

What were the issues?

Whether disallowance under Section 40(a)(ia) is justified for guarantee commission payments where tax was not deducted at source, considering previous Tribunal rulings.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 195

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA

Hearing: 16/02/2022Pronounced: 16/02/2022

4713/Del/2017 are two separate appeals by the assessee preferred against the order of the CIT(A)-5, Delhi dated 03.05.2017 pertaining A.Y.2011-12 and 2012-13.

2.

Since the first appellate authority has decided the captioned appeals by way of a consolidated order, both these appeal are disposed of by this common order for the sake of convenience.

3.

The common grievance in the captioned appeals relates to the disallowances of guarantee commission on account of non- deduction of tax at source invoking provisions of section 40 (a) (ia) of the Act. The quantum may differ.

4.

Briefly stated the facts of the case are that during the course of the scrutiny assessment proceedings the AO noticed that the assessee has made payment to Plan Corp. NV being reimbursement of guarantee charges on which no tax was deducted at source.

5.

The AO was of the firm belief that the tax should have been deducted on the amount of reimbursement made u/s.195 of the Act. Invoking the provisions of section 40 (a) (ia) of the Act the AO made the disallowances of Rs.1,25,06,120/- in A.Y. 2011-12 and Rs.1,37,24,792/- in A.Y.2012-13.

6.

Assessee carried the matter before the CIT(A) but without any success.

7.

Before us the counsel for the assessee stated that similar disallowances were made in earlier assessment years where the matter travelled up to the Tribunal and the Tribunal in and 6462/Del/2015 for A.Y.2009-10 and 2010-11 has decided the issues in favour of the assessee.

8.

The DR fairly conceded to this.

9.

We have carefully considered the orders of the authorities below. We have also perused the orders of this Tribunal (supra). An identical grievance was considered and decided by this Tribunal. The relevant findings read as under :-

More judgments on Section 40(a)(ia)

All 7,300 judgments and leading authorities on Section 40(a)(ia) →

Recent GST High Court judgments

Search GST case law →