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TMI Blog2022 (5) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has also submitted before the AO that some of the payments are not liable for deduction of tax at source since the payments made to each of the parties was less than the threshold limit prescribed in the respective section for deduction of tax at source. Under the set of facts, it cannot be said that there were mistakes apparent from record in the assessment order passed by the AO under section 143(3) of the Act. As submitted by the assessee, the AO has entertained the view that there were mistakes apparent from record only from the objections given by Internal Audit Party and not from the assessment record. Accordingly, we are of the view that the very initiation of rectification proceeding under section 154 of the Act is bad i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,043/- respectivily. As per the Anexure VII forming part of Form 3CD, Col. 27(b), the assessee has deducted TDS of Rs. 3,61,456/-, being 100/9 of professional fees of Rs. 36,14,560/- but not deducted TDS on advertisement charges. Since there is short fall in deduction of TDS of Rs. 22,577/- (Rs. 3,84,033 - Rs. 3,61,456) and non deduction of TDS of Rs. 19,043/-, the proportionate expenses are required to be disallowed and brought to tax u/s. 40a(ia) of the income tax Act, 1961. Accordingly, the expenses of Rs. 2,25,770/- towards professional fees and Rs. 1,90,427/- on advertisement charges, totalling to Rs. 4,16,200/- have to be brought to tax. 3. Before the AO, the assessee objected to the initiation of rectification proceedings and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statement. With regard to the advertisement expenses, the Ld AR submitted that the assessee has furnished copy of the payment voucher wherein it is stated that the advertisement expenses were incurred at various places with different parties. Hence, there was no liability to deduct tax at source from the said payments also. The Ld AR further submitted that the internal audit party has drawn inference that the assessee has not deducted tax at source on the basis of certain mathematical calculations on surmises and conjectures. Hence such kind of inferences, opposed to facts available on record, cannot be the basis for initiating rectification proceedings under section 154 of the Act. 5. The Ld DR, on the contrary, submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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