9911796707
TMI Blog2012 (3) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... ivil contract works. The assessee firm has filed its return of income for the impugned assessment year 2007-08, admitting an income of ₹ 4,99,660/-. Initially, the return was processed under section 143(1). Later on, regular assessment was completed under section 143(3), determining the total income at ₹ 40,04,760/-, against the returned income of ₹ 4,99,660/-. In the course of assessment, the Assessing Officer has made a disallowance of ₹ 30,64,000/- under section 40(a)(ia) for the reason of non deduction of TDS. He has also made an addition of ₹ 3 lakhs against disallowance of self-made vouchers. Another disallowance of ₹ 1,41,102/- was made as disallowance of interest to partners accounts. 3. The d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. It is against this that the assessee has come in appeal before us. 6. On going through the assessment order, we find that the Assessing Officer has considered the issue of TDS in a detailed manner in his assessment order. In fact this issue alone was discussed by the Assessing Officer in a detailed manner in his assessment order. He has gone through the accounts of the assessee and also the audit report filed in Form No.3CB and No.3CD. It is after examining all these documents that the Assessing Officer has made a disallowance of ₹ 30,64,000/- under section 40(a)(ia). 7. Now, it is the case of the Commissioner of Income tax that the assessee has made sub-contract payment of ₹ 1,45,50,000/- and no TDS was accounted for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. The fact that the assessee has made a provision for TDS in its accounts does not in fact decide the issue whether the assessee was bound by the provisions of TDS or not. Section 40(a)(ia) would apply only to a case where the assessee is bound by TDS provisions and such deduction is not made by the assessee. TDS provisions would apply when the assessee actually makes payment or credits the accounts of the parties. In the present case the Commissioner of Income-tax has not made any finding that the assessee has made payments in excess of the mandatory limit prescribed for TDS or the assessee has credited the accounts of the sub-contractors with commensurate amounts. 9. Therefore, in the facts and circumstances of the case, we find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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