AZURE GREEN TECH PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), DELHI, DELHI

ITA 6199/DEL/2026Status: DisposedITAT Delhi21 September 2026AY 2021-227 pages
AI SummaryAllowed

What were the facts?

The assessee paid interest to a foreign entity and deducted TDS at a lower rate than what the PCIT believed was applicable. The PCIT initiated revision proceedings under Section 263, proposing disallowance of interest under Section 40(a)(i) due to short TDS deduction.

What did the Tribunal hold?

The Tribunal held that disallowance under Section 40(a)(i) cannot be made for short deduction of TDS; the appropriate course of action is to invoke Section 201. Therefore, the PCIT's direction for disallowance was not justified.

What were the issues?

Whether the PCIT was justified in invoking revision jurisdiction to direct disallowance of interest under Section 40(a)(i) for short deduction of TDS.

Which sections of the Income-tax Act were involved?

Section 263,Section 40(a)(i),Section 201,Section 271C,Section 94B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI M. BALAGANESH & SHRI SUDHIR KUMAR

For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR

SHRI M. BALAGANESH, ACCOUNTANT MEMBER The appeals in ITA No.6198 & 6199/Del/2026 for AYs 2020-21 and 1. 2021-22, arises out of the order of the ld Pr. Commissioner of Income Tax-1, Delhi [hereinafter referred to as ‘ld. PCIT’, in short] dated 27.03.2026 against the order of assessment passed u/s 14

The order continues below.

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