9911796707
TMI Blog2019 (1) TMI 1517X X X X Extracts X X X X X X X X Extracts X X X X ..... for the welfare and economic upliftment of ex-servicemen being the citizens of India. The corporations covered under section 10(26BBB) are also statutorily not required to file return of income as per section 139 of the Act. References were received in the Board requesting for extension of the aforesaid exemption from TDS granted vide Circular No.4/2002 to the corporations covered under section 10(26BBB) as well. The CBDT has now clarified that there would be no requirement for tax deduction at source from payment made to corporations enjoying exemption under section 10(26BBB). The Central Board of Direct Taxes, issued Circular No. 07/2015 no. F. No. 275/50/2006 IT(B) Dated April 23, 2015 on serial no 65 Any Income of a corporation for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applying the provisions of section 40(a) (ia) which are not applicable and as such the addition is illegal, arbitrary and unjustified. 2) That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in upholding the addition of ₹ 6,17,296/- for alleged Interest Payable as on 31st March 2013 by invoking provisions of section 43 B of the ACT, which are not applicable and as such the addition is illegal, arbitrary and unjustified. 3) That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in upholding the disallowance of deduction equal to the assessed income u/s 80 P (2) (a) (i) of the ACT. 4) That the Ld. Commissioner of Income Tax (Appeals) has erred in law as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionally exempt under section 10 of the Income-tax Act (the Act) and who are statutorily not required to file return of income as per section L39 of the Act, there would be no requirement for tax deduct ion at source (YDS) from the payments made to them since their income is anyway exempt under the Act. 2. Sect ion 10(26BBB) came into existence after the issue of the said Circular dated 16.07.2002. The said sect ion was inserted in the Income-tax Act vide Finance Act, 2003 (w.e.f. 01.04.2004; unconditionally exempting any income of a corporation established by a Central, State or Provincial Act for the welfare and economic upliftment of ex-servicemen being the citizens of India. The corporations covered under section 10(26BBB)are also s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,24,519/-, which had duly been paid to M/S Punjab Ex Servicemen Corporation, Chandigarh. The said payment was given without the deduction of TDS as the corporation i.e. M/S Punjab Ex Servicemen Corporation, Chandigarh had got Exemption U/S 10(26BBB] of the Income Tax Act, 1961 regarding deduction of Income Tax. SECTION 10(26BBB) OF THE INCOME-TAX ACT, 1961 - CORPORATION ESTABLISHED FOR WELFARE AND ECONOMIC UPLIFTMENT OF EXSERVICEMEN - REQUIREMENT OF TAX DEDUCTION AT SOURCE IN CASE OF CORPORATIONS WHOSE INCOME IS EXEMPT UNDER SECTION 10 (26BBB) EXEMPTION THERE OF CIRCULAR NO. 7 / 2015 [F.NO.275/50/2006-IT(B]], DATED 23-4-2015. The CBDT Circular No. 4/2002, dated 16-7-2002 provides that in case of such entities, whose income is uncondit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt from tax under section 10 (26BBB). 10. Keeping in view the Circular issued by the CBDT the disallowance made by the Assessing Officer which was not based on the said Circular is hereby deleted. 11. The Ground No. 2 pertains to the disallowance of ₹ 617296/- under section43B. 12. During the course of assessment proceedings the assessee was seen to have claimed interest expenses of ₹ 1,56,50,627/- payable to SADB as on 31st March 2013. But the assessee had failed to discharge its entire liability of payable as on 31st March 2013 before due date of filing of return. Accordingly, the amount of ₹ 6,17,296/- (1,56,50,627 1,50,33,331/-) was disallowed by Assessing Officer invoking the provisions of section 43B of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
