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TMI Blog2019 (10) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... [ 2012 (12) TMI 873 - CALCUTTA HIGH COURT ] Hon ble High Court held that in the case of shortfall in deduction due to any difference of opinion as to the taxability of any item or nature of payments falling under various TDS provisions, the proper course for the revenue is to declare the assessee as an assessee in default u/s 201 of the Act but no disallowance can be made by invoking the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance of ₹ 39,38,400/- made by ld. AO u/s 40(a)(i) and further erred in directing the ld. AO to verify the claim and that too without observing the principles of natural justice. 2. That in any case and in any view of the matter, action of ld. CIT(A) in not deleting the disallowance of ₹ 39,38,400/- made by ld. AO u/s 40(a)(ia) is bad in law and against the facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment proceedings, ld. AO found that the assessee made short deduction of TDS of ₹ 7,87,680/- on foreign payments, deducted TDS at 4.22% instead of 20% and, therefore, the total payment made by the assessee to the foreign party to the tune of ₹ 49,92,585/- proportionately was disallowed which comes to ₹ 39,38,400/- u/s 40(a)(ia) of the Act. 3. In appeal, ld. CIT(A) confirmed the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any difference of opinion as to the taxability of any item or nature of payments falling under various TDS provisions, the proper course for the revenue is to declare the assessee as an assessee in default u/s 201 of the Act but no disallowance can be made by invoking the provisions of Section 40(a)(ia) of the Act. In these circumstances, while respectfully following the said decision, we hold tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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