The Income Tax Appellate Tribunal (ITAT), Delhi bench has held that the provisions of TDS under section 194D of the Income Tax Act, 1961 is not applicable to the reinsurance commission.
The assessing officer, while concluding the assessment proceedings made a disallowance under section 40(a)(ia) of the Act due to alleged non-compliance with the provisions of section 194D of the Act. The assessee claimed that the provision contained under section 194D is not applicable to the reinsurance commission.
After hearing arguments from both the sides, the Tribunal bench comprising Shri G.S. Pannu, President and Shri Saktijit Dey, Judicial Member observed that the issue in dispute appears to be covered in favour of the assessee by a number of judicial precedents.
“Therefore, we are inclined to grant expeditious hearing of the corresponding appeal of the assessee. Accordingly, with the consent of both the parties, Registry is directed to fix the appeal for hearing on 28.04.2022. Paper-books, if any, shall be filed by the parties sufficiently ahead of the date of hearing of the appeal, in accordance with the extant rules. Since, the date of hearing of the appeal is announced in the open court in presence of both the parties, issuance of separate notice for hearing to the parties is dispensed with,” the Tribunal said.
Staying the recovery proceedings, the Tribunal added that “As regards the impugned demand, the Assessing Officer may pursue the assessee for paying a part of the demand. However, no coercive action shall be taken by the Assessing Officer for recovery of the demand till the date of hearing of the appeal, i.e., 28.04.2022. It is made clear, in case of any unnecessary adjournment being sought by the assessee, the interim protection granted to the assessee will be vacated and the assessee will also lose the benefit of early hearing of appeal.”
Comments