Court :
INCOME TAX APPELLATE TRIBUNAL
Brief :
At the time of hearing before us, it was pointed out by the learned counsel for the assessee that this issue is settled in favour of the assessee for AY 2005-06 because the similar disallowance was made in AY 2005-06. The learned CIT (A) allowed the relief to the assessee. The Revenue had filed appeal against the order of CIT (A) in AY 2005-06 but, in the said appeal, this ground was not raised. He clarified that in AY 2005-06, some other disallowances were also made which were also deleted by the CIT (A) and, in the Revenue’s appeal, the issue raised was only with regard to other disallowances and not against the disallowance of circuit expenses paid to various telecom companies. He furnished before us the copy of the CIT (A)’s order for AY 2005-06 as well as the grounds of appeal furnished before ITAT and also the decision of the ITAT. He also pointed out that the disallowance was made by the Assessing Officer on the only ground that the circuit charges paid by the assessee to various telecom companies were in the nature of rent and, therefore, the assessee was required to deduct TDS under Section 194I. He pointed out that Section 194I came into effect with effect from 13.7.2006 and would be applicable for AY 2007- 08. This aspect is also clarified by the CBDT in Circular No.1 of 2007.
Citation :
Assistant Commissioner of Income Tax,Circle-12(1),New Delhi.(Appellant)Vs. M/s Global One India Pvt.Ltd.,C-56, Neeti Bagh,New Delhi.PAN: AABCG2558B. (Respondent)
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