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TMI Blog2016 (3) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... t both the expenses are of different nature and they have correctly deducted tax at source as may be applicable as per the provision of I.T. Act,1961 and therefore, no disallowance is called for of expenses of different nature by aggregating the same as a single expense U/S 194(1). The learned CIT (A) under the facts and circumstances of the case ought to have accepted the claim of your appellant 2. The learned CIT (A) has erred in law as well as in facts by confirming and upholding the order of the A.O. in part by directing him to restrict the disallowance of Rs. 2,40,000 only U/S 40(a)(ia) when the A.O. treated two separate expenses as a single expense U/S 194(I) and disallowed the amount in proportion to short fall. 2.1 The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal. Therefore, under the facts and circumstances of the case it is prayed that necessary relief as may be deemed fit and proper under the facts and circumstances of the case be granted. Without prejudiced to the above 1. The order of the learned A.O. as partially confirmed by the learned CIT(A) be declared without jurisdiction as much as the A.O has no jurisdiction to determine an applicability of TDS provision to particular transaction while making disallowance U/S 40(a)(ia) because there is a separate jurisdiction in existence to interpret the matter of applicability of TDS provision and assessment thereof. The A.O ought to have restricted his power to disallowance of expenses for non deduction of tax at source without inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... framed the assessment u/s 143(3) vide order dated 20.12.10 by making additions u/s 40(a)(ia) of Rs. 4,36,800/- on account of non deduction of TDS on rent and short deduction of TDS on service charges u/s 194I of the Act for the reasons that the TDS should have been deducted @ 10% under the provision of 194(I) of the Act and the assessee knowing the split the total amount into rent and service charges in order to circumvent the provisions of TDS. 4. Aggrieved by the order of the AO the assessee preferred an appeal before the CIT(A) who partly allowed by the CIT(A) by holding that the assessee has rightly deducted the TDS @ 2% on service charges u/s 194C and AO was wrong in holding that the TDS was required to be deducted u/s 194I and not u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed [one hundred and eighty thousand rupees]:" 5. Thus, it is clear from above that for the purpose of deduction of tax at source under provision of section 194I of the Act the annual rent has paid or credited to one person has to Rs. 1,80,000/- whereas in the case before us the rent per person was only paid of Rs. 1,20,000/- which is below the limit specified in this section. In view of these facts , the provision of section 194I are not applicable in the present case and the disallowance made by the AO by applying the provision of section 40(a)(ia) of the Act cannot be sust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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