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TMI Blog2022 (8) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... ecause the assessee has shown the expenditure as a whole in his accounts having been paid. What remains in the hands of assessee is not on account of any payment due to such persons but the tax deducted at source is left to be deposited to the Government in accordance with the relevant provisions. It was for the purpose of accounting that the amount has been shown in the form of provision not as payable on any account to any creditor or on a contingency but held merely to be deposited in due course. Even otherwise, the heads of expenses against which the payments were made when stand allowed through P L account, some part of it, being TDS, cannot be left standing alone, by holding it as still payable. As relying on M/S DELOITTE HASK ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es below erred in making an addition of Rs. 69,76,701/- to the returned income on account of TDS payable as on 31.03.2015, contrary to the facts of the case and law. 2. That the authorities below erred in not holding that the provisions relating to the assessee s responsibility for deduction and deposit of tax at source were part of provision for collection and recovery of tax and not of computing sections of total income and therefore out of preview of section 145 of the Income Tax Act, 1961. 3. That the Authorities below having accepted the expenses incurred and debited to Profit and Loss Account as Professional expenditure, erred in disallowing the portion thereof taken to liability towards taxes collected at source in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure as a whole in his accounts having been paid. What remains in the hands of assessee is not on account of any payment due to such persons but the tax deducted at source is left to be deposited to the Government in accordance with the relevant provisions. It was for the purpose of accounting that the amount has been shown in the form of provision not as payable on any account to any creditor or on a contingency but held merely to be deposited in due course. Even otherwise, the heads of expenses against which the payments were made when stand allowed through P L account, some part of it, being TDS, cannot be left standing alone, by holding it as still payable. 7. The Co-ordinate bench findings in the case of M/s. Deloitte Has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity cast upon the assessee to deduct the sum from the recipient of such income. The moment the 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. Therefore, the amount of TDS is to be 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 had not been paid by the assessee even while following the cash system of accounting. It is also not in dispute that the assessee has duly deposited the tax deducted at source within the time prescribed under the Act. Accordingly, we are unable to concu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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