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TMI Blog2018 (1) TMI 1659X X X X Extracts X X X X X X X X Extracts X X X X ..... t the case of the assessee that the services were not rendered by the vendors. Therefore, it can be said that the liability had already crystallized and there exists an obligation to pay this amount and no uncertainty is involved in the transaction. Once services are received by the assessee, the payee or recipients of the payments are clearly identified and therefore the contention that the payees are not identifiable cannot be accepted. Furthermore, the provisions of section 194A and 194 C which are applicable to the payments in question contains Explanation clarifying that any amount credited to any account called payable account or suspense account or by any other name in the books, the same shall constitute credit of income to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of manufacturing and sale of tractors, trailers, bus chassis, road machinery and construction equipment. The TDS Officer had noticed that in the return of income filed for the assessment year 2012-13, the assessee-company made certain disallowances suo motu u/s 40(a)(i)and 40(a)(ia) of the Income Tax Act 1961 [hereinafter referred to as the Act ]. Based on this information, the TDS officer had inferred that the assessee had failed to deduct tax at source on those payments and therefore called upon the assessee-company to furnish details of payment as well as TDS remitted to the Government account. In response to the same, the assessee had furnished reply vide his letter dated 28/10/2013 along with Form 3CD, filed along with retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fibre Foam Pvt. Ltd. vs. ITO (35 taxmann.com 155) wherein the decision of the Mumbai bench in the case of Pfizer was Ltd., was distinguished and not followed by holding that the express provisions contained in section 194A were not considered. Further the ld.CIT(A) had not accepted the contention that provision made is only on ad hoc basis and therefore TDS provisions are not attracted, as the liability was already created for services already received by vendors in terms of contract with identified parties and the liability was also recognized in the books of account. However, ld.CIT(A) directed the TDS officer to reduce the amount of tax on TDS on the amounts on which subsequently TDS was deducted. 5. Being aggrieved by this order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made by the assessing officer under Sections 201 (1 A) ofthe Act. 6. Without prejGdice, the additions sustained by the CIT (Appeals) are arbitrary, excessive, unreasonable and ought to be deleted in toto. 7. For these and such Other grounds that may be urged at the time of hearing, the Appellant prays that the appeal may be allowed. 6. The learned counsel for the assessee submitted that ad hoc provisions were created at the year-end in conformity with the accounting principles and no payee was identified. Therefore the question of tax deducted at source does not arise and reliance in this regard was placed on the decision of the coordinate bench of Bangalore in ITA No.3/Bang/2015 the case of M/s.TE Connectivity India Pvt. Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of TDS are applicable. The facts in the case of M/s.TE Connectivity India Pvt. Ltd.(supra) relied upon by the learned counsel for the assessee are clearly distinguishable. In that case, payees were not identifiable and provisions were made on ad hoc basis whereas in the present case, payees were identified and from the details of provisions made available before us, in the paper book, it is clear that it is not an ad hoc provision as the provisions contained odd figure also and it is also clear that the payees were clearly identified as the services were already received. Therefore, the ratio of the decision of this Tribunal in the case of M/s.TE Connectivity India Pvt. Ltd. (supra) is not applicable. 9. In the result the appeal fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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