ADDL. CIT, NEW DELHI vs. M/S SRL LTD., NEW DELHI

Briefly stated relevant facts are that the assessee company is engaged in the business of running state of the art diagnostic laboratories, which conduct tests meant for diagnosis of various ailments of human beings. During the course of hearing, AR has 2 produced details called for which has been test checked. For the Asstt. Year 2011-12, they have filed their return of income showing a loss of Rs.21,74,43,858/- on 29.9.2011. Assessment was completed at a loss of Rs.10,08,18,403/- and the AO made additions of Rs.39,74,080/- on account of interest on income-tax refund, Rs.1,41,34,770/- on account of disallowance u/s 40(a)(ia) for non deduction of TDS on the discounts offered by the assessee at various rates to the agencies against the revenue earned from them and Rs.82,01,260/- on account of payments made to the foreign/non resident collection agents.

In the appeal preferred by the assessee, ld. CIT(A) deleted the addition made on account of the disallowance u/s 40(a)(ia) and 40(a)(i) following the decision of the Tribunal under identical facts and circumstances for the Asstt. Year 2006-07, which was followed by the ld. CIT(A) for the AYs 2008-09 and 2009-10.

Revenue, therefore, preferred this appeal stating that the ld. CIT(A) erred in deleting the addition made by the AO u/s 40(a)(i) and 40(a)(ia) on account of non-deduction of TDS which the assessee was liable to deduct u/s 194H/194C/195 of the Act on the discount given by the assessee to its collection agents/franchise/clinical trials etc., in India.

None appeared on behalf of the assessee. Learned DR heavily relied upon the assessment order.

We have gone through the record. In the impugned order, ld. CIT(A) clearly held that though the ld. AO made the addition onthe