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2020 (9) TMI 253 - AT - Income Tax


Issues:
1. Calculation of Annual Lettable Value (ALV) based on Municipal Rateable Value.
2. Disallowance of expenses for non-deduction of TDS under section 40(a)(ia) of the Income-tax Act.

Issue 1: Calculation of ALV based on Municipal Rateable Value:
The appeal by Revenue challenges the CIT(A)'s decision regarding the determination of ALV based on Municipal Rateable Value. The Revenue contends that ALV should be calculated as per the deeming provision of section 23(1) of the Act. The case involved the leasing of a property to Tata Sky Ltd. at a lower rent than the previous lease to Deutsche Bank. The Assessing Officer assessed the rent based on the previous higher rent, leading to a difference in income declared by the assessee. The CIT(A) remanded the matter to consider ALV based on Municipal Lettable Value, citing previous Tribunal decisions. The Tribunal upheld the CIT(A)'s decision, emphasizing that the issue was recurrent and had been addressed in prior cases, directing the computation of ALV based on municipal rateable value. The Tribunal found no fault in the CIT(A)'s direction, dismissing the Revenue's appeal on this issue.

Issue 2: Disallowance of expenses for non-deduction of TDS under section 40(a)(ia):
The second issue pertains to the disallowance of expenses by the Assessing Officer for non-deduction of TDS under section 40(a)(ia) of the Act. The assessee made a year-end provision for expenses without deducting TDS, leading to a disallowance by the Assessing Officer. The CIT(A) reversed the disallowance, noting that the TDS was deducted and paid to the Government before filing the return of income. The Revenue challenged this decision, but both parties agreed that the issue was settled in favor of the assessee based on prior Tribunal decisions. The Tribunal confirmed the CIT(A)'s decision, emphasizing that the TDS was deducted and paid before the due date of filing the return of income. Consequently, the Tribunal dismissed the Revenue's appeal on this issue.

In conclusion, the Tribunal upheld the CIT(A)'s decisions on both issues, ruling in favor of the assessee and dismissing the Revenue's appeal.

 

 

 

 

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