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TMI Blog2018 (9) TMI 1695X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) in denying the admissibility of the expenditure incurred towards cost of tyres and accessories totalling to Rs. 32,500/- as business expenditure on the sole ground that no case was made out for admitting additional evidence being the relevant invoices/bills against which payment were made which were produced before the First Appellate Authority but not furnished before the AO during the assessment proceedings. The second ground is against the order of disallowance u/s 40(a)(ia) on the appellant's claim for deduction of interest amount to the tune of Rs. 56,250/- and Rs. 43,858/- which were paid to two parties without deducting of tax at source. Ground No.1 3. The assessee has filed its return on 26.09.2013 declaring total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r hand, relies on the orders passed by the authorities below. 5. We have heard the ld. Representative of the parties and perused the relevant materials available on records. We find no reason for not accepting the bills/vouchers for purchases of tyres and accessories as submitted by the assessee before us which was already placed before the ld. CIT(A). The bills and vouchers and relevant documents in support of the claim of the assessee which were though placed before the ld. CIT(A) but was not considered by him and confirmation of addition of Rs. 32,500/- on such account that no case has been made to admit those additional evidence and also on the ground that these evidences were not placed before the ld. AO cannot be appreciated by us. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before us that the necessary documents have also been submitted before the Revenue authorities. The ld. DR relies upon the orders passed by the authorities below. 8. We have heard the ld. Representative of the parties and perused the relevant materials available on record. We find substance in the arguments advanced by the ld. AR. According to the assessee since the parties have filed their income tax return within the due period and paid necessary taxes thereon section 40(a)(ia) of the Act will not be applicable in this case. The judgement relied upon in the case of Right Address Ltd vs ITO (TDS) Ward-59(4) is squarely applicable in the present facts and circumstances of the case. . The relevant thereof portion is as follows : " If t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso of section 40(a)(ia) of the Act is also applicable to the case of the assessee. "[ Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to subsection (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso.] Explanation - For the purposes of this sub-clause - (i)"commission or brokerage" shall have the same meaning as in clause (i) of the Explanation to section 194H; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and this ground of appeal is dismissed." 11. It reveals that the assessee has acted bona fide and there was no intention on its part to benefit the recipients of interest by way of not deducting tax from the interest so paid to these two parties. It appears that no reason has been assigned by the ld. CIT(A) while declining to apply the judgment of Right Address Ltd. Vs ITO TDS Ward-59(4) in favour of the assessee. He thus failed to distinguish the judgment on fact and on law while disapplying the same. Taking into consideration of the case made out by the assessee, the judgments as well, we allow the ground of appeal preferred by the assessee by deleting the addition of Rs. 1,00,208/- as made by the authorities below. Since the original ..... X X X X Extracts X X X X X X X X Extracts X X X X
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