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TMI Blog2013 (6) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the income of the assessee. In favour of assessee. Non deduction of TDS - software development expenses, financial consultancy charges and Director's remuneration - Held that:- As form paper book filed by the assessee profit and loss account for the period from 14.06.2006 to 31.03.2007 as filed that the entire expenditure of Rs.1,01,06,389 during the year has been shown as closing work in progress at Rs.1,01,04,668/-. Thus it is seen that no expenditure has been claimed as deduction in the profit and loss account by the assessee. Hence the question of making any disallowance of any expenditure for non deduction of tax at source by invoking the provisions of section 40(a)(ia) does not arise. In favour of assessee. - ITA No.254/Kol/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one in the name of Nowser Ali Sk involving an amount of Rs.31,60,000/-, Rs.5,68,000/- and Rs.5,68,000/- respectively. The first two individuals are director of the company. The AO further observed that the assessee was not in possession of the land nor any valid transfer had taken place in favour of them. As such an amount of Rs.42,96,000/- comprising of the above amounts in the name of Anwar Ali Molla, Ranu Parveen Molla and Nowser Ali Sk involving an amount of Rs.31,60,000/-, Rs.5,68,000 and Rs.5,68,000/- respectively are disallowed against the head 'land procurement and registration and added to the income of the assessee. 4.1. On appeal the ld. CIT(A) deleted the disallowance by observing as under :- "4.3. I have gone through the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount in the work in progress in the profit and loss account. The AO disallowed and made addition of Rs.42,96,000/- on the ground that the assessee was not in possession of the land nor any valid transfer had taken place in favour of the assessee. The contention of the assessee is that no deduction for any expenditure was claimed in the profit and loss account therefore no disallowance of expenditure can be made by the AO. It was submitted that the entire amount of expenses were debited to the work in progress of the assessee. The AR of the assessee in support of his contention has taken us to page-8 of the paper book wherein a copy of the profit and loss account for the period 14.06.2006 to 31.03.2007 has been filed form which it is seen t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) confirmed the disallowance u/s 40(a)(ia) of the IT Act. Similarly the AO disallowed Rs.32,843/- under the head administrative expenses as the assessee had not deducted TDS form such payments. Therefore the disallowance was made by the AO by invoking the provisions of section 40(a)(ia) of the Act which was confirmed in appeal by the ld. CIT(A). Similarly addition of Rs.90,000/- was made on account of payment to the directors and according to the AO TDS was required to be deducted from this payment u/s 194J of the Act which was not deducted by the assessee and hence the disallowance was made u/s 40(a)(ia) of the Act by the AO which was confirmed in appeal by the ld. CIT(A). 10. The contention of the ld. AR is that since no expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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