TDS not Applicable on Wages and AO Ignored Certificate by DDIT(E): ITAT deletes Income Tax Addition [Read Order]
![TDS not Applicable on Wages and AO Ignored Certificate by DDIT(E): ITAT deletes Income Tax Addition [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/01/TDS-DDITE-ITAT-Income-Tax-Addition-Income-Tax-Tax-Taxscan.jpg "TDS not Applicable on Wages and AO Ignored Certificate by DDIT(E): ITAT deletes Income Tax Addition [Read Order]")
The New Delhi Bench of the Income Tax Appellate Tribunal ( ITAT ), deleted addition on the ground that TDS not applicable on Wages and that the Assessing Officer (AO) Ignored Certificate by Deputy Director of Income Tax (Exemptions)(DDIT(E)). The dispute of the Revenue is that the assessee, Ramesh Chawla had not deducted the TDS on account of loading and unloading expenses and, therefore,...
The New Delhi Bench of the Income Tax Appellate Tribunal ( ITAT ), deleted addition on the ground that TDS not applicable on Wages and that the Assessing Officer (AO) Ignored Certificate by Deputy Director of Income Tax (Exemptions)(DDIT(E)).
The dispute of the Revenue is that the assessee, Ramesh Chawla had not deducted the TDS on account of loading and unloading expenses and, therefore, the AOmade an addition of Rs.54 lakhs and theCIT(A) restricted the addition to Rs.1 lakh, thereby, the CIT(A) deleted the addition for the balance amount.
The Counsel for the assessee, submitted that the AOmade the addition on account of loading and unloading payments on the ground that in some cases TDS was not deducted, but, the AO had not pointed out in the assessment order as to which are such payments, on which the assessee was liable to deduct the TDS.
The Counsel further submitted that during the remand proceedings also, the Certificate issued by DDIT(E) as per which TDS was not applicable in respect of Wages and Levy received by the Goods Transport Labour Boardduring the assessment year under consideration.
However, the AOignored this Certificate of DDIT (Exemptions) and made the impugned addition, which cannot be sustained in the eye of law as the AO has not considered the Certificate issued by one of Competent Authority of Income Tax Department which is with respect to exempt of deduction of TDS.
A Bench consisting of Pradip Kumar Kedia, Accountant Member and Chandra Mohan Garg, Judicial Member observed that “The CIT(A) had only restricted the addition to the extent TDS which was deductible and deleted the balance addition out of the total addition of Rs.54 lakhs made by the A.O. Since the order of the CIT(A) on this issue is in accordance with the provisions of Income Tax Act.”
To Read the full text of the Order CLICK HERE
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