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TMI Blog2013 (1) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... RAJENDRA SINGH, AM: These cross appeals are directed against the order dated 3.3.2010 of CIT(A) for the assessment year 2007-08. The only dispute raised in this appeal is regarding disallowance of expenses under section 40(a)(ia) for deducting tax at lower rate. 2. The facts in brief are that the AO during the assessment proceedings noted that the assessee had deducted tax at lower rate co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of .25%. The AO, therefore disallowed the sum of ₹ 21,05,580/-. In case of M/s. Devendra Roadways, the AO vide certificate under section 197 dated 21.11.2005, had allowed deduction at lower rate of .56%. The AO observed that the certificate was valid for financial year 2005-06. However, the assessee in respect of payment made of ₹ 21,20,100/- in the month of April to May 2006 had ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39/-. Similarly in case of M/s. Shivji Kanji, the assessee had deducted sum of ₹ 21,735/- where tax deductible was ₹ 13,730/-. Thus, in the above two cases the assessee had deducted more tax overall. CIT(A), therefore, deleted the disallowance made in respect of the above party. In case of M/s. Devendra Roadways, CIT(A) found that tax deductible was ₹ 47,491/- but the assessee de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at lower rate, no disallowance is to be made. Reliance for this proposition was placed on the decision of the Tribunal in the case of DCIT vs. Chandrabhoy Jassobhoy in ITA No.20/Mum/10 for the assessment year 2006-07 order dated 8.7.2011 and on the judgment of the Hon'ble High Court of Calcutta dated 3.12.2012 in the case of CIT vs. S.K. Tekriwal in Income tax Appeal No.183 of 2012. The ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action under section 201(1) could be taken. The view taken by the Tribunal has been upheld by the judgment of the Hon'ble High Court of Calcutta in the case of S.K. Tekriwal (supra). Following the said decisions, no disallowance is called for in case of the assessee as the assessee had deducted tax though at lower rate. We, therefore, set aside the order of CIT(A) and delete the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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