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

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.

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.

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.

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.

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

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.

The DR fairly conceded to this.

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 :-