SAMBHU GHOSH,KOLKATA vs. DCIT/ACIT CIR-49, KOLKATA, KOLKATA

The only grievance is regarding disallowance made by AO and confirmed by Ld. CIT(A) in respect of short deduction of TDS.

At the outset itself, we note that the assessee had paid labour charges of Rs.72,82,833/- and since AO noted that TDS was not deducted in respect of eight parties he disallowed corresponding payment of Rs.25,58,200/- u/s. 40(a)(ia) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”). On appeal, the Ld. CIT(A) gave partial relief and have confirmed Rs.21,96,800/-. Aggrieved, assessee has filed this appeal and has brought to our notice that the assessee has satisfied the requirements of 1st proviso to sec. 201(1) of the Act which has been held to be retrospective in operation. We note that the payees have furnished their return of income u/s. 139 of the Act and has taken into account the amount paid by the assessee for computing income in their return of income and has Sambhu Ghosh., AY- 2010-11 paid the tax due on the income declared by them in such return of income and payees have furnished the certificate to this effect from Chartered Accountant’s certificate in Form No. 26A which is found in compliance to CBDT Notification No. 37/2012. In such a scenario, no disallowance was warranted. Therefore, we direct deletion of the disallowance made by the AO and confirmed by the Ld. CIT(A). We direct deletion of addition of Rs.21,96,800/-. This ground of appeal