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TMI Blog2015 (6) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... uch tax has not been deducted is satisfied. Where tax is deducted by the assessee under a wrong provisions of TDS and there is a shortfall, u/s 40(a)(ia) disallowance cannot be made. As the issue of short deduction is settled revision proceedings initiated by CIT u/s. 263 are invalid and hence, quashed. - Appeal of assessee is allowed. - I.T.A No. 1076/Kol/2014 - - - Dated:- 16-6-2015 - Shri P. K. Bansal, AM Shri Mahavir Singh, JM For the Appellant: Shri M. D. Shah For the Respondent: Shri A. K. Singh, CIT, DR ORDER Per Shri Mahavir Singh, JM: This appeal by assessee is arising out of revision order of CIT, Kol-XX vide No. CIT-XX/Kol/Rev.u/s263/2013-14/5991dated 31.03.2014. Assessment was framed by ITO, Wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 011. The assessment was completed with lumsum disallowance under various heads i.e. site expenses, transport cost and travelling, conveyance and repair maintenance expenses. Subsequently, the CIT examined the records and noticed that the assessee has debited a sum of ₹ 82,40,116/- under the head labour charges. As per the list of creditors submitted by the assessee the TDS was required to be deducted u/s. 194C(1) of the Act on the amount paid/credited under the head labour charges @ 2% on ₹ 82,40,116/-. According to CIT, the TDS worked out at ₹ 1,69,746/-. He noticed that as per column 27 of the Tax Audit Report, the total TDS deducted is at ₹ 87,490/- which is 1% of the total labour payments. As there was short dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Vs. M/s. S. K. Tekriwal (2014) 361 ITR 432 (Cal), wherein Hon ble High Court has confirmed the findings of Tribunal by observing as under: S. 40(a)(ia) can be invoked only when the two conditions, namely, that tax is deductible at source and such tax has not been deducted is satisfied. Where tax is deducted by the assessee under a wrong provisions of TDS and there is a shortfall, s.40(a)(ia) disallowance cannot be made. As the issue of short deduction is settled by Hon ble jurisdictional High court in the above cited case, the revision proceedings initiated by CIT u/s. 263 of the Act are invalid and hence, quashed. Appeal of assessee is allowed. 5. In the result, appeal of assessee is allowed. 6. Order is pronounced in the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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