ACIT, NEW DELHI vs. M/S. FUTURE FIRST SERVICES PVT. LTD., NEW DELHI

ITA 3476/DEL/2017Status: DisposedITAT Delhi16 July 2021AY 2009-1019 pages
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What did the Tribunal hold?

The Tribunal held that the disallowance of director's remuneration was unsustainable due to lack of justification and acceptance in subsequent years. It also held that no disallowance under Section 40(a)(ia) can be made for short deduction of TDS if a lower deduction certificate was provided.

What were the facts?

The Revenue and assessee filed cross-appeals against an order concerning assessment year 2009-10. The key issues involved transfer pricing adjustments, disallowance of rent payment due to TDS issues, and disallowance of director's remuneration.

What were the issues?

Whether the disallowance of director's remuneration under Section 40A(2)(b) was justified, and whether disallowance under Section 40(a)(ia) is permissible for short TDS deduction when a lower deduction certificate is available.

Which sections of the Income-tax Act were involved?

Section 40A(2)(b),Section 40(a)(ia),Section 197(1)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DELHI BENCH “I-1” NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri Ajit Kumar Jain, CA & Shri
For Respondent: Shri Dheeraj Singh, Sr.D.R

Heard together (2 matters)

I.T.A. No.3476/DEL/2017
I.T.A. No. 3838/DEL/2017

Read from the judgment's own cause title. This page is filed under one of them.

PER AMIT SHUKLA, JM:

The aforesaid Cross Appeals have been filed by the Revenue as well as by the assessee against impugned order dated 18.11.2016 passed by ld. CIT(A)-XLIV, New Delhi for ITA No.3476 & 3838/DEL/2017 2

the quantum of assessment passed u/s.143(3) r.w.s. 144C(3) for the Assessment Year 2009-10. The effective ground raised by the assessee reads as under:

“2. On the facts and in the circumstances of the case, the CI

The order continues below.

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