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TMI Blog2014 (6) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs 71,797/- the CIT(A) observed that the payment was made in small amounts in respect of which the assessee was not liable to deduct tax at source u/s 194C of the Act – there was no material brought by the Revenue to show any error in the finding of the CIT(A) – thus, there was no reason to interfere in the order of the CIT(A) in respect of deletion of amount of Rs 5,67,078/- and Rs 71,797 – Decided partly in favour of Revenue. Disallowance out of carting and labour charges – Held that:- AO could not point out the amount of expenses for which vouchers could not be produced by the assessee or the amount of expenses in respect of which vouchers produced were defective and what was the nature of defect in the vouchers - no basis of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that the assessee has made payments of Rs 12,63,860/- towards carting expenses without deducting tax at source u/s. 194C of the Act. In reply to show cause notice of the Assessing Officer, the Authorized Representative of the assessee submitted details of tax deducted at source and paid to the credit of the Central Government on carting expenses of Rs 4,03,891/- out of the total carting expense of Rs 12,63,860/-. The Assessing Officer, therefore, held that the assessee has failed to deduct tax at source on carting expenses of Rs 8,59,969/- and therefore, by invoking the provisions of section 40(a)(ia) of the Act made disallowance of the same. 5. On appeal, the Commissioner of Income Tax (Appeals) observed that during the course of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of Rs 1,01,797/- consisting of small amounts, no details were given for amount of Rs 30,000/-. Therefore, he confirmed the disallowance of Rs 30,000/- and deleted the disallowance for the balance payment of Rs 71,797/-. Thus, out of total of Rs 8,59,696/-, disallowance of Rs 1,80,700/- was confirmed and balance disallowance of Rs 6,79,269/- (Rs 40,394 + Rs 5,67,078 + Rs 71,797) was deleted. 7. The Revenue is in appeal before us against the deletion of disallowance of Rs 6,79,269/-. 8. The Departmental Representative supported the order of the Assessing Officer. We find that the Commissioner of Income Tax (Appeals) deleted the disallowance of Rs 40,394/- as he found from the copy of the ledger account of Shri Suresh K. Patel fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax (Appeals) could be pointed out by the Departmental Representative. 10. Further, in respect of deletion of Rs 71,797/-, the Commissioner of Income Tax (Appeals) observed that the payment was made in small amounts in respect of which the assessee was not liable to deduct tax at source u/s. 194C of the Act. We find that no material was brought before us by the Departmental Representative to show any error in the above finding of the Commissioner of Income Tax (Appeals). In these circumstances, we do not find any good reason to interfere with the order of the Commissioner of Income Tax (Appeals) in respect of deletion of amount of Rs 5,67,078/- and Rs 71,797/-. Therefore, this ground of appeal of the Revenue is partly allowed for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the nature of defect in the vouchers. Further, we find that the no basis of making disallowance at the rate of 10% was stated in the order of assessment. Thus, the disallowance was made entirely on the basis of arbitrary estimate of the Assessing Officer. In absence of any material brought on record to show that the estimate of disallowable expenditure of Rs 5,67,912/- made by the Commissioner of Income Tax (Appeals) is not justified and more disallowance was required, we do not find any good reason to interfere with the order of the Commissioner of Income Tax (Appeals) and therefore, this ground of appeal of the Revenue is dismissed. 15. In the result, the appeal of the Revenue is partly allowed. Order pronounced in the Court on F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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