9911796707
TMI Blog2015 (6) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... r. In such circumstances, it cannot be ruled out that assessee has made payments to those parties for hiring buses. The assessee has returned receipts from the business of transportation of students at ₹ 57,05,083/-. The parties might not have responded to the letters issued by the Assessing Officer in view of strained relationship with the assessee. On this ground alone, the payments made to those parties for hiring buses by the assessee cannot be doubted. In these circumstances, we delete the disallowance - Decided in favour of assessee. Disallowance under section 40(a)(ia) - non deduction of tds - Held that:- Provisions of section 40(a)(ia) have no application in case the payments were made within the accounting year. Since the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once disallowance was resorted to on an estimated basis, no further disallowance was warranted especially disallowance of ₹ 9,84,7661- under the head Bus Running Charges and hence confirming the Assessing Officer's disallowance was uncalled for. 5. The CIT(A) erred in confirming the disallowance under the head Bus Running Charges ₹ 9,84,766/ -. 6. The CIT(A) further failed to appreciate that, having regard to the nature of business, the assessee had discharged his onus of proving the expenditure, and hence the confirming the disallowance was unjustifiable, since there was no material or basis. 7) The CIT(A) failed to appreciate that the assessee has discharged his onus and neither was there any material or basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making various disallowances. He submits that Assessing Officer disallowed expenditure of ₹ 37,37,565/- , out of ₹ 52,11,411/- debited to profit and loss account, and this amount is 72% of the total expenditure. Therefore, he submits that disallowances are not at all justified and he completely places reliance on the grounds of appeal. 5. Departmental Representative vehemently supports the orders of lower authorities. 6. Heard both sides. Perused orders of lower authorities. The Assessing Officer while completing the assessment under section 143(3) on 30.12.2009 disallowed ₹ 10,00,000/- out of bus maintenance and bus spares and consumables stating that assessee has not produced vouchers and bills. On appeal, the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the orders of the lower authorities and submissions of the assessee before the lower authorities, we find that the travel agents, who supplied buses to the assessee firm which in turn given on hire for transportation of students, have not responded to the letters issued by the Assessing Officer. It was the submission of the assessee that in view of the strained business relationship, the parties might not have responded to the letters issued by the Assessing Officer. He submits that the fact that assessee firm hired vehicles from various parties is not disputed by the lower authorities. The only reason for disallowing the amounts is that the assessee could not produce their confirmations and the parties have not responded to the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication, in case payments were already made before the end of accounting year. The co-ordinate Bench of this Tribunal in the case of ITO Vs. Theekathir Press in ITA No.2076/Mds/2012 dated 18.09.2013 held as under:- 2. In the present case, the Assessing Officer has disallowed the claim of certain expenditure made by the assessee under section 40(a)(ia) on the ground that tax has not been deducted at source and paid to the credit of Government of India. But, the Commissioner of Income tax (Appeals) deleted the disallowance stating that the amount 'payable' alone would attract the disallowance under section 40(a)(ia) and the amount already paid would not attract the above provision. The Revenue is aggrieved and, therefore, this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.20 of 2013 in the case of CIT vs. Crescent Export Syndicates, has held that the order of the Special Bench of the Tribunal in the case of Merilyn Shipping Transports vs. Addl.CIT is not acceptable. The same view has again been repeated by the Hon'ble Calcutta High Court in the case of CIT vs. Md. Jakir Hossain Mondal, through their judgment delivered on 4th April, 2013 in ITA No.31 of 2013 The Hon'ble Gujarat High Court in the case of CIT vs. Sikandarkhan N.Tunvar, 33 Taxman.com.133, has also held that the disallowance under section 40(a)(ia) does not distinguish between amounts paid and payable . In view of the above judgments of two High Courts, the learned Officer contended that the appeal of the Revenue needs to be allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
