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TMI Blog2012 (8) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS @ 2.06% from the said payment as per section 194C of the I.T.Act: Name of party Amount (Rs.) TDS (Rs.) Remarks M/s. Bluefin Marine 27,78,000 57,277 Boat hiring charges for vibrocoring work M/s. Ravikiran Boat Services 85,000 1,751 Boat hiring charges for HRP project Total: 28,63,000 59,028 4. The AO stated that said expenditure is in respect of equipment hiring and is covered under section 194-I of the Act and rate of TDS applicable on the same is 11.33% (including surcharge and education cess). AO stated that there is a short deduction of TDS. He stated that assessee has not complied with the provisions of Chapter XVIIB of the Act. Therefore, AO allowed the expenditure to the extent of ₹ 5,20,989 stating that asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that in the case of the assessee the provisions of section 194-I is applicable instead of Section 194C of the Act, which could be a case of short deduction of TDS and as such, the disallowance of expenditure claimed by the assessee cannot be made by applying provisions of section 40(a)(ia) of the Act. Ld A.R. also placed reliance on the decision of Rajkot Bench of ITAT in the case fo Shri Narendra M. Jatiya vs DCIT (I.T.A. No.119/jt/2011 for A.Y. 2006-07) vide order dated 20.1.2012. He submitted that the Kolkata Bench of ITAT has considered the similar issue in the case of DCIT vs. S.K.Tekriwal, 48 SOT 515(Kol), wherein, it was held that if there is shortfall of deduction due to difference of opinion as to the taxability of any item or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of payment falling under various TDS provisions. Similar view has been taken by the ITAT Mumbai in the case of M/s. Chandabhoy & Jassobhoy (supra) to which one of us (Accountant Member) is a party. Respectfully following the above decision of co-ordinate benches of the Tribunal, we hold that the authorities below were not justified to disallow the claim of assessee by invoking provisions of section 40(a)(ia) of the Act. The assessee could be declared an assessee in default under section 201 of the Act and the difference in tax could be calculated alongwith interest if the same has not been paid by the payee/recipient. Accordingly, Ground Nos.1 to 4 taken by the assessee is allowed by deleting the disallowance made u/s.40(a)(ia) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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