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TMI Blog2017 (2) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... ble and thus the provisions of section 40(a)(ia) have wrongly been applied by the AO. The addition thus made under section 40(a)(ia) is thus deleted and ground of appeal is allowed. Addition on account of under-statement of interest income earned - Held that:- In the return of income, the appellant has claimed credit of the whole of such TDS of ₹ 43,619 which in terms of section 199 of the Act, impliedly means that the corresponding income has been offered to tax and where the same is not offered to tax, it should be brought to tax in that year. There cannot be a situation where the credit for TDS is made in one year and income is offered to tax in another year. In view of that, in the instant case, where the appellant has earned i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 014 wherein the assessee has taken following grounds of appeal: (i) That under the facts and circumstances of the case, the ld. CIT(A). Alwar erred in sustaining the addition of commission of ₹ 4,40,820/- paid genuinely by the appellant to two non-residence parties on the ground that TDS should have been deducted from this amount even when the provisions of deduction of TDS were not applicable in this case. Accordingly the reasonable and genuine commission of ₹ 4,40,820/- deserves to be allowed and the disallowance made by the AO deserves to be deleted. (ii) That under the facts and circumstances of the case, the ld. CIT(A). Alwar erred in sustaining the addition of FDR interest income of ₹ 4,35,333/- even when t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal, an addition of ₹ 4,35,333/- has been made by the AO on account of under-statement of interest income earned by the appellant. The difference in the interest income declared by the appellant in the return of income filed and interest income shown in Form 26AS of the Income Tax Department has been assessed by the AO as interest income not declared. The appellant has stated that there was no FDR with the bank other than the margin money as per the Balance Sheet of the appellant and the AO has imaginarily calculated the interest income of ₹ 4,35,333/-. It was further submitted that as far as the difference of interest income as per Form 16A and as shown in Profit and Loss account is concerned, it is submitted that total interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is deleted. The ground of appeal is thus partly allowed. 4. In ground No.3 of assessee s appeal, an addition of ₹ 21,283/- has been made by the AO on account of disallowance of bad debts. The appellant has submitted that the amounts are small and are not recoverable from various parties and have thus been written off. The ld CIT(A) has given a finding that most of these payments claimed as bad debts have been shown in the books as excess payment made for purchase of consumable stores, freight outwards, staff advance etc. It is thus not in dispute that these excess payments are towards various expenditure pertaining to the business of the appellant and thus the test of business expediency is satisfied. Further, the same have been w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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