DCIT vs M/S Hindustan Wire Products Ltd… | ITAT Chandigarh 2018

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the Revenue against the order dated 13.09.2017 of the Commissioner of Income Tax(Appeals)-1, Ludhiana [hereinafter referred to as ‘CIT(A)’].

The sole issue raised in this appeal is relating to the action of the Ld. CIT(A) in deleting the disallowance made by the Assessing officer u/s 40(a)(ia) of the Income-tax Act, 1961 (in short 'the Act').

Before us, the Ld. Counsel for the assessee has pleaded that though the assessee had deducted TDS on the amounts paid to certain parties, however, the respective payees had taken into consideration the amount

ITA No. 1609-Chd-2017- M/s Hindustan Wire Products Ltd., Patiala 2

received from the assessee while computing their taxable income and had

filed their income tax return accordingly. The Ld. counsel, therefore, relied

upon second proviso to section 40(a)(ia) of the Act inserted by the

Finance Act 2012, which provides that in case an assessee fails to deduct

TDS as per the provisions of section 40(a)(ia) of the Act, but he is not

deemed to be assessee in default under the first proviso to sub-section (1)

of section 201, then, for the purpose of provisions of section 40(a)(ia) of

the Act, it shall be deemed that as the assessee had deducted and paid the

tax on such sum on the date of furnishing of return of income by the

resident payee referred to in the said proviso. It is pertinent to mention

here that first proviso to Section 201 stipulates that a person if failed to

deduct tax in accordance with the provisions of the Act shall not be

DCIT, CIRCLE, PATIALA vs. M/S HINDUSTAN WIRE PRODUCTS LTD.,, PATIALA

Cases cited in this judgment