2017 (1) TMI 991

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..... ame cannot be re-characterised in the assessment order of the present year merely for the purpose of applying provisions of section 194A. Such kind of superfluous exercise is not permitted under the law. Thus, as per law and facts of this case, the case of the assessee is not covered u/s 194A as the mandatory condition of there being turnover exceeding a sum of ₹ 40 lakhs is apparently missi .....

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..... e to one another: 1. The Learned Commissioner of Income Tax (Appeals) erred in confirming the assessment order passed u/s. 143 (3) r.w.s.263 determining total income at ₹ 89,56,503/-. 2. The Learned Commissioner of Income Tax (Appeals) fails to appreciate that the order u/ s . 143 (3) r .w. s . 263 is without jurisdiction and bad in law. 3. The Learned Commissioner of Incom .....

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..... he provisions of section 194A which stipulate that the assessee shall be liable to deduct TDS only if its turnover in the immediately preceding financial year is more than ₹ 40 lakhs. Our attention was drawn on the copy of income-tax return as well as assessment order passed u/s 143(3) showing that turnover of the assessee in the immediately preceding year was not more than ₹ 40 lakhs. .....

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..... year, i.e. AY. 2004-05, the assessee had shown interest income amounting to ₹ 71,533/- was shown as income from other sources. The said income was accepted as income from other sources by the AO in the assessment order passed u/s 143(3) dated 30-12-2008. Thus, perusal of the return as well as assessment order of the immediately preceding year shows that turnover of the assessee was not more .....

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..... e mandatory condition of there being turnover exceeding a sum of ₹ 40 lakhs is apparently missing in this case. Thus, assessee was not obliged to deduct TDS u/s 194A. Thus, the AO as well as the Ld. CIT(A) have erred in making disallowance u/s 40(a)(ia). The same is directed to be deleted. 5. In the result, the appeal filed by the assessee is allowed. Order pronounced in the court on t .....

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