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TMI Blog2021 (1) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount of tax deducted at source to the recipient of the income from whose payments the tax have been deducted. Tax deduction at source is a liability cast upon the assessee to deduct the sum from the recipient of such income. In fact the moment assessee deducts the tax at source from the sums paid to the other person it becomes the liability of the assessee who can be held to be an assessee in default for the above sum as well as liable to pay interest and penalty also. The amount of tax deducted at source is always considered as the sum paid by the assessee on behalf of the recipient of the income. Therefore, it cannot be said that the above sum has not been paid by the assessee even while following the cash system of accounting. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Rules made u/s. 200 of the Income Tax Act and therefore, the authorities below are not justified in making the addition and confirming the same. 5. At the outset, ld. AR brought to our notice that similar additions were made by the Assessing Officer and confirmed by the CIT(A) for the assessment year 2013-14 also and when the matter reached the Tribunal, the co-ordinate Bench of this Tribunal by order dated 11.09.2019 in ITA No. 1122/Del/2017, deleted the addition by following the decision in the case of CIT v. Calcutta Export Company (2018) 404 ITR 654 (SC). He further submitted that since identical question was decided by the Tribunal in favour of the assessee, same may kindly be followed in these years also. 6. Per con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties, the Tribunal observed that ; - 7. We have carefully considered the rival contention and perused the orders of the lower authorities. Admittedly, the assessee is following the cash method of accounting and therefore generally whatever is the cash outflow, the assessee is entitled to claim the same as a deductible expenditure. In the present case the assessee has made cash payment to the various parties after deducting tax at source. The portion of the amount paid to them was already allowed to the assessee as a deductible expenditure. However, the issue is whether the amount of tax deducted at source from the payment made to the recipient of such income can be said to be the amount of expenditure incurred by the assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in 404 ITR 654 where the assessee has paid the above tax deduction at source to the credit of the government within the prescribed time. Accordingly the appeal of the assessee on the solitary issue of the disallowance of sum of INR 2 49381/ is allowed. 8. There is no dispute that the facts are similar and the decision of the co-ordinate Bench of Tribunal for assessment year 2013-14 is squarely applicable to the facts of this case also. As of now, such a decision has become final. In view of the decision taken by the co-ordinate Bench on similar set of facts and circumstances of the case, we find it difficult to deviate from such view. Respectfully following the same, we answer the issue in favour of the assessee. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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