9911796707
TMI Blog2025 (2) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... hold accordingly.
However, in respect of the short deduction of deduction and interest, it is the case of the assessee that short deduction was due to exclusion of the service tax component as per the CBDT Circular.
This fact is required to be verified at the end of the assessing authority. Therefore, the impugned order on the short deduction of tax is set aside and the issue is restored to the AO who would verify from the accounts of the assessee whether the short deduction was due to the exclusion of the service tax component and if so, same shall be decided in the light of the CBDT Circular No. 01/2014 dated 13.01.2014 (F.No 275/59/20124T(B). All the grounds of appeal of the Revenue are disposed off in the terms of the above. X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition made on account of short deduction of TDS amounting to Rs. 6,75,432/on various payment made towards training and recruitment expenses ignoring the fact that the assessee did not submit any documentary proof regarding payment of service tax on which no TDS was deducted. 5. Ld. CIT (A) has erred in law and on facts in deleting the addition made on account of short deduction of TDS to Rs. 32,770/- on payment made towards professional and other services ignoring the fact that the assessee did not submit any documentary proof regarding Payment of service tax on which no TDS was deducted. 6. The order of Ld. CIT(A) may be cancelled and the order of the AO be restored. 7. Appellant craves to leave/to modify/amend or add any one or mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt deduction of tax at source. Aggrieved against this, the assessee preferred an appeal before the Ld. CIT(A) who allowed the appeal of the assessee and deleted the impugned additions. Now, the Revenue is in appeal before this Tribunal. 3. Apropos to the grounds of appeal, the Ld. DR submitted that as per the assessee itself it had deducted tax on some of the payments and the assessee itself treated them as contractual payments. Therefore, he prayed that the order of the Ld. CIT(A) be set aside and the finding of the assessing authority be restored. 4. On the other hand, the Ld. Counsel for the assessee opposed the submissions of the Ld. Sr. DR for Revenue and submitted that the Assessing Officer failed to appreciate the fact in the right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder. For the sake of clarity, the relevant contents of the impugned order are reproduced as under: - "6.2 The gist of the short deduction and interest thereon: a. The AO noted in para 5 of his order that appellant had short deducted TDS by Rs. 18,02,380/- on payment made to Steel Authority. The AO after examining submissions of appellant held as under: Appellant had made contractual payment of Rs. 100964348/- to Steel Authority and no TDS was deducted. The ledger submitted shows TDS deducted @ 2% on Rs. 10845326/- paid on 27.01.2016 and no TDS on remaining amount of Rs. 90119022/-. b. The AO noted in para 6 of his order that appellant had short deducted TDS by Rs. 681931/--on payment made to M/s Aarvee for technical consultancy. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entire share capital is owned by Government of UP and Government of India. It is engaged in providing metro rail services in Lucknow. b. Appellant had contracted with M/s Steel Authority of India Limited (SAIL) for purchase of railway tracks. Since it was contract for supply of Iron & Steel materials, TDS was liable to be deducted. Thus, on objection of SAIL appellant reversed the TDS deducted earlier. Also, in light of judgment of jurisdictional High Court in case of Shri Krishna Kumar Goel reported in (2014) 41 taxmann.com 113 no TDS is liable to be deducted u/s 194C on contract of supply of goods. c. TDS was deducted @ 10% on payment made to M/s Aarvee Associates for availing their technical consultancy by excluding service tax co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he service tax component as per the CBDT Circular. This fact is required to be verified at the end of the assessing authority. Therefore, the impugned order on the short deduction of tax is set aside and the issue is restored to the Assessing Officer who would verify from the accounts of the assessee whether the short deduction was due to the exclusion of the service tax component and if so, same shall be decided in the light of the CBDT Circular No. 01/2014 dated 13.01.2014 (F.No 275/59/20124T(B). All the grounds of appeal of the Revenue are disposed off in the terms of the above.
7. In the result, the appeal of the Revenue is partly allowed for statistical purposes.
Order pronounced in the open Court on 20/02/2025. X X X X Extracts X X X X X X X X Extracts X X X X
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