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TMI Blog2014 (11) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's assertion regarding deduction and deposit of TDS nor did it contest the correctness of form 16-A - the assessee had in fact deducted TDS from the payments of commission and service charges to Shri J.C.Arora by treating the same as salary and that the amount has been remitted to the government – the order of the Tribunal is upheld – Decided against revenue. Allowability of deduction u/s 14A of the Act – Interest liability out of other income – Held that:- Following the decision in COMMISSIONER OF INCOME TAX Versus M/s LAKHANI MARKETING INCL [2014 (7) TMI 44 - PUNJAB AND HARYANA HIGH COURT] - unless and until, there is receipt of exempted income for the concerned AYs (dividend from shares), Section 14A of the Act cannot be invoked - r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en when the assessee voluntarily admitted during the course of assessment proceedings that the TDS was not deducted on these payments. 2. Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the decision of Ld. CIT(A) in deleting the disallowance of ₹ 23,46,941/- which was made by the Assessing Officer by invoking section 14A of the Income Tax Act, 1961 particularly when the investment in shares of M/s Lakhani India Ltd. which yield dividend income are not forming part of the total income by virtue of section 10(33) of the Income Tax Act and hence since dividend did not form the part of total income and when the financial burden incurred by the assessee for acquiring shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards the fact that the revenue did not controvert the assessee's assertion regarding deduction and deposit of TDS nor did it contest the correctness of form 16-A. A relevant extract from the order passed by the ITAT, would place the aforesaid conclusion in its correct perspective:- 6. On the first issue of disallowance u/s 40A(ia) the Ld. Commissioner of Income Tax (Appeals) has given a clear finding of fact that the assessee had in fact deducted TDS from the payments of commission and service charges to Shri J.C.Arora by treating the same as salary and that the amount has been remitted to the government. On this factual findings, which are not controverted by the Ld. D.R., we have no other alternative but to up hold t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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