Excess deduction of TDS cannot be compensated with non deduction of TDS

1. ITO vs Nisha Saraf - (ITAT)

 

Non Deduction of TDS - Disallowance u/s 40(a)(ia) - Excess deduction of TDS cannot be compensated with non deduction of TDS. In the absence of the details of the balance job charges of Rs.13,78,542/-, the Ld. CIT(A) is not justified to delete the entire disallowance by observing that the assessee has recovered excess TDS on Rs.1,49,69,028/-. The assessee is directed to furnish the details of Rs.13,78,542/- to substantiate whether the TDS is required to be deducted or not, before the AO.

 

2. Mayo College Old Boys vs DIT (E) (ITAT)

 

Exemption u/s 80G - DIT (Exemption) has denied the claim of the assessee for renewal of exemption u/s 80G. The reason for declining such request is that the assessee has received income under the head ‘Advertisements and golf tournaments income’ and it has also incurred substantial expenditure on this activity only. Whether a charitable Institution and main object of the assessee is to encourage education tin broader sense and one of such activity was organizing golf tournament which resulted in some income from advertisement and also expenditure on the advertisement, would alter the basic character of the assessee as charitable organization. Held, by the very nature of this association, holding of such advertisement tournament for the members i.e. ? Old Boys Association? would be permissible and that factor alone cannot become reason for holding that the respondent has incurred expenditure in the activities of commercial nature.

 

ITAT relied on honorable high court judgment reported in (2009) 003 TaxCorp (DT) 43913 (DELHI) held that “It is hardly possible for a charitable trust to work with no source of income – as long as the user of that money is charitable, then the exemption has to be granted merely because some remuneration was taken by the petitioner foundation for undertaking these projects would not alter the character of these projects. The amended definitions of charitable purpose would not alter these positions.”

 

 

3. Mr. Sumit Khurana vs ACIT (ITAT)

 

S. 48, 50C, 142A – Computation of Capital gains - Whether AO was justified in making reference to the valuation cell under section 142A, where no material to show assessee had received any sum in excess of that shown in sale deed and even where no evidence to show that value shown in sale deed was higher or lower than stamp value. Held , if the sale has been made at the rates prescribed by the stamp valuation authority, no addition can be made. However, if sale has been made at lower value than the value prescribed by stamp valuation authority for the purpose of stamp duty, the AO will adopt the valuation as per Stamp Duty Act.

 

Computation of capital gains the legislature has used expression ‘full value of consideration’ and not the fair market value of the property and AO was directed to adopt the full value of consideration, as per provisions of section 50C of the Act.

 

Also Read: Shagun Buildwell Ltd. v. Dy. CIT held where value of property not fully disclosed by assessee, AO justified in making reference u/s. 142A

 

 

4. Purvez A. Poonawalla vs ITO - (ITAT)

 

S. 56(2)(v) of the Act have to be understood as per the definition of consideration as given in the Indian Contract Act, 1872 in section 2(d).

 

Provisions of S. 56(2)(v) - Any receipt to be treated as income should be receipt of monies “without any consideration” but the Assessee receipts in question are in consideration for the Assessee withdrawing his caveat and giving up his right to challenge the legality and validity of the will of late Mrs.Mani Cawas Bamji. The monies receipts by the assessee cannot be treated as income u/s 56(2)(v) of the Act.

 

The assessee has abstained from contesting the will and this  constitute the consideration for payment by Mr. R.K.Bavasa to the assessee. Thus the amount received by the assessee is not without any consideration. Therefore, the provisions of section 56(2)(v) of the Act were not applicable.