Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

The disallowance of expenses on account of non deduction of TDS be restricted to 30% of the expenses where the amounts paid are in excess of Rs. 10,000/-.

Shanti Prime Publication Pvt. Ltd.

Sec. 40(a)(ia) & 194H of Income Tax Act, 1961— TDS — Disallowance of expenses on account of non deduction of TDS be restricted to 30% of the expenses where the amounts paid are in excess of Rs. 10,000/-keeping in mind the curative nature of the amendment made in section 40(a)(ia).

Facts: Assessee had paid commission to various persons on which no TDS was deducted. The submission of the assessee for non applicability of provisions of s. 40(a)(ia) was not found acceptable to AO. AO was of the view that the non deduction of TDS would attract provision of u/s. 40(a)(ia) and made disallowance of the entire amount of commission . When the matter of disallowance was carried by the Assessee before CIT(A), the action of disallowance was upheld by CIT(A). Aggrieved by the order of CIT(A), Assessee is now before Tribunal.

Held, that on those payments which individually are below Rs. 10,000/-, assessee was not required to deduct TDS u/s. 194H and with regard to the payments to be in excess of Rs. 10000/- , it was found that Finance (No.2) Act has made amendment to section 40(a)(ia) w.e.f. 01.04.2015 which is curative in nature, therefore, it was held that the disallowance of expenses on account of non deduction of TDS be restricted to 30% of the expenses where the amounts paid are in excess of Rs. 10,000/-. - MURADUL HAQUE V/s ITO - [2020] 26 ITCD Online 075 (ITAT-DELHI)