9911796707
TMI Blog2013 (11) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... ready noticed, section 40(a)(ia) would apply when there is a requirement of deduction of tax at source and such requirement is either not fulfilled or having deducted tax at source is not deposited within prescribed time - Non deposition / submission of Form 15H / 15G is not a ground to disallow expense u/s 40(a)(ia) – Decided in favor of Assessee. Disallowance of brokerage expenditure of Rs. 2,75,000/- - Held that:- Appellant had submitted the all details of recipients with address and PAN to the A.O. during the course of assessment proceeding. He had deducted the TDS on brokerage. The working of brokerage has been provided - Thus, the liability of brokerage has crystallized on the basis of sale made by the assessee. Thus, it is not a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na Deliwala Rs.8,582/- iv) Azad Deliwala Rs.8,282/- v) Meena P. Champaneri Rs. 4,553/-. The appellant had claimed interest expenses of Rs. 81,757/- without deducting and paying TDS. The A.O. made addition of Rs.81,757/- u/s. 40(a)(ia). 4. Being aggrieved by the order of the A.O., the assessee carried the matter before the CIT(A) who had held that the appellant had to file Form No. 15H/15G in the office of the CIT. Otherwise such form is in assessee s custody remains an incomplete declaration. Section 197A (2) clearly cast the responsibility of furnishing such documents within a certain specified period which gets correlated with the date of deduction of tax. The deductor was not entitled to take his own decision of non-deduction and was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are satisfied, the liability of the payee to deduct tax at source would cease. The requirement of such payee of furnish details to the income tax authority in the prescribed form within prescribed time would arise later and any infraction in such a requirement would not make the requirement of deduction at source applicable under sub-section (2) of section 194C of The Act. In our view, therefore, the Tribunal was perfectly justified in taking the view in the impugned judgment. It may be that failure to comply such requirement by the payee may result into some other adverse consequences if so provided under the Act. However, fulfillment of such requirement cannot be linked to the declaration of tax at source. Any such failure therefore canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven provision of preceding year amounting to Rs.2,01,997/- remained only partly discharged to the extent of Rs.1,30,917/-. The brokerage pertained to as early as April 2005 and remained unpaid during the F.Y. 2005-06. The appellant had not proved that the provision of liability existed and crystallized during the year. This is pure provision and contingent liability. It is further observed that major liability had been created in the name of four persons listed at Sr. Nos. 4,32,38 and 39 of Annexure A to the letter dated 19th November 2008, against whose name the brokerage was being credited for the first time and who did not have the relevant PAN details. Further, during the year, there is a decline in the GP rate and there is no correla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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