9911796707
TMI Blog2013 (7) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... letter. Therefore, this ground of the Revenue's appeal is dismissed. Jeep's transportation expenses - non deduction of TDS - AO has made disallowance of the payment made by the assessee to the drivers holding that such payment was made to "NAW" under the contract - CIT(A) deleted the addition - Held that:- "NAW" is an authorised transporter of "MML". It is not coming out of the order of the AO, whether, the assessee had made payment to "NAW", and such amount was credited to the account of "NAW". The AO has also not examined the claim of the assessee that Rs.4,000/- was inclusive of premium of freight charges and other expenses. The AO has made allowance on the presumption of contract between the assessee and "NAW" but no enquiry is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO made disallowance of expenditure in respect of payment of incentive and commission, and also made disallowance under section 40(a)(ia) of the Act qua jeep transportation expenses. 4. The first ground is against the deletion of addition of Rs.2,57,000/- made by the AO. The learned DR submitted that the assessee failed to substantiate its claim in respect of incentive and commission. He submitted that the AO was justified in disallowing the expenditure, since the assessee could not give confirmative letters from the persons to whom the incentive and commission was paid. On the contrary, the learned counsel for the assessee submitted that the assessee paid incentive and commission by way of cheque, and he submitted that the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entive was paid to staff members when sample sheets produced before him. We have given our thoughtful consideration to the facts of the present case. The assessee is required to establish that it has incurred expenditure in respect of the incentive paid to the persons. In the case in hand, the assessee has produced before the AO evidences of payment of incentives and also letter from "MML" setting target for the assessee. Therefore, it could not be presumed that the assessee has not paid any incentive. We find that before the authorities below, the assessee has given evidence of payment of commission, but has not got confirmation from the persons to whom the payment was made. Under such circumstances, the learned CIT(A) was justified in con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the drivers. The AO considered the payment made to drivers, as payment made to "NAW", who being the authorised transporter of "MML". Under these facts and circumstances of the present case, we have to examine, as to whether the assessee was required to deduct tax under Section 194C of the Act or not. The provision of section 194C of the Act would be applicable if the assessee is responsible for paying any sum to the contractor for carrying out any work. In the case in hand, the AO has made disallowance of the payment made by the assessee to the drivers holding that such payment was made to "NAW" under the contract. The undisputed facts are that "NAW" is an authorised transporter of "MML". It is not coming out of the order of the AO, whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The contention of ld. Counsel for the assessee that the amount of incentive paid is duly reflected in the books of accounts, merely on the ground that no letter of confirmation was furnished would not make the claim of the expenditure as not allowable, has no merit. The onus is on the assessee to prove that the expenditure is in fact incurred and he has also support his claim with material evidence. The person who received incentive has to confirm the receipt of such incentive in the absence of same adverse inference is justified. Therefore, taking our view above consistently, in the above appeal of the Revenue, this CO of the assessee is also dismissed. 12. In the result the appeal of the Revenue and the CO of the assessee are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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