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TMI Blog2018 (10) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... - Shri Pradip Kumar Kedia, Accountant Member And Ms. Madhumita Roy, Judicial Member For the Appellant : Shri Bhadresh Gandhakwala, A.R. For the Respondent : Shri Saurabh Singh, Sr. D.R. ORDER PER PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER The captioned appeal has been filed at the instance of the assessee against the order of CIT(A) dated 06.10.2016 arising in the Assessment Order dated 09.02.2015 passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 concerning A.Y. 2012-13. 2. In the captioned appeal the assessee has challenged the action of the CIT(A) in confirming the disallowance of ₹ 5,52,562/- under section 40(a)(ia) on the ground that the assessee has not furnished the partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, did not find merit in the plea of the assessee and rejected the appeal of the assessee. 5. Aggrieved, the assessee preferred appeal before the Tribunal. 6. We have carefully considered the rival submissions and perused the orders of the authorities below. It is the case of the assessee that disallowance under section 40(a)(ia) is not permissible as necessary information from the contractors for nondeduction were obtained and as a sequel thereto return in the prescribed form was filed before the prescribed authority albeit late. We find that identical issue came up for adjudication in ITO vs. M/s. Globe Cargo Services in ITA No.434/RJT/2011, order dated 01.05.2018, the operative paragraphs of the aforesaid order is self explanator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss or profession ,- (a) In the case of any assessee (i) ....... (ii) (ia) any interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, [has not been paid.... (only relevant portion extracted). The provision noted above spells out that the amount cannot be allowed as deduction only in the event when tax is deductible at source under Chapter XVII-B and such ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have also perused decision of the ITAT in the case of Karwat Steel Traders V/s. ITO (ITA no.68322/Mum/2011 order dated 10.7.2013) relied upon by the CIT(A) in this regard. We find the facts in the present case are identical to the facts in the case of Karwat Steel Traders wherein the Tribunal has taken a favourable view on the similar facts. Respectfully, following the order of the Co-ordinate Bench of the Tribunal, we hold that TDS is not deductible on receipt of Form No.lSG and accordingly, section 40(a)(ia) of the Act is not applicable in the facts of the case, Thus, assessee succeeds on this score also. 8. In parity, we find the conclusion drawn by the CIT(A) for non-applicability of provisions of section 40(a)(ia) in the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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