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TMI Blog2015 (7) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... 4AB and this fact also gets strengthen by the order of the Tribunal as relied by the Ld. Counsel. Accordingly, the assessee was not liable to deduct TDS, therefore, no disallowance u/s 40(a)(ia) can be made. Thus Ground no. 1, as raised by the assessee is allowed. Ad-hoc disallowance on account of salary and various other expenses - Held that:- We find that disallowances has been made on ad-hoc basis whereby 50% of the salary has been disallowed. The assessee in the paper book has filed details of employees giving their designations and addresses to whom the salary was paid during the year. If such details are on record which has not been rebutted, then no ad-hoc disallowance on account of salary can be made. Accordingly, the disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s receipts were below audit limit u/s 44AB; (ii) ad-hoc disallowance of ₹ 5,80,456/- on account of salary and various other expenses, and (iii) disallowance of depreciation of ₹ 28,056/-. 3. The brief facts are that the assessee is a proprietor of M/s Srinivas Clearing Shipping Agency and is engaged in the business of undertaking Clearing and Forwarding Agent providing services to customers for facilitating import/export of goods by sea as well as for related services. The Assessing Officer noted that the assessee has not deducted tax on the payments shown under the head commission and freight income , which the assessee was liable to deduct u/s 194C. The assessee s case was that it has received total amount of ₹ 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies, we find that the preliminary argument raised by the Ld. Counsel appears to be correct, because the provisions of section 194C as it stood prior to 01.06.2008 provided that in case of individual or HUF whose total sales, gross receipts or turnover from business or profession does not exist monetary limits specified under section 44AB during the financial year immediately preceding the financial year in which such sums is credited or paid then he has no liability to deduct income tax under section194C(2). In this case, it is has not been rebutted that assessee s turnover in the immediately preceding financial year had not exceeded monetary limit specified u/s 44AB and this fact also gets strengthen by the order of the Tribunal as relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are concerned, we are of the opinion that the disallowance made by the Assessing Officer and confirmed by the CIT(A) are slightly excessive looking to the nature of expenses, therefore, we restrict the disallowance at 10%. The assessee will get part relief on this score. 10. Regarding disallowance on depreciation on computers, we find that the same was made on the ground that computers were put to use after September, 2006 therefore, disallowance have been made for half of the year instead and full year as claimed by the assessee. This finding of fact as recorded by Ld. CIT(A) and Assessing Officer has not been rebutted because, therefore, such a finding of the CIT(A) confirming the said disallowance is affirmed. Accordingly, the ground on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore CIT(A) which is in contravention to provision laid in Rule 46A of the Act. 6. The appellant prays that the order of the ld. CIT(A) on the above grounds be reversed and that of the assessing officer be restored. 7. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary . 13. So far as ground no. 1, 2 3 are concerned, the same are covered by our finding in assessee s appeal that assessee was not liable to deduct TDS u/s 194C and therefore such a disallowance cannot be made u/s 40(a)(ia), accordingly, ground nos. 1, 2 3 are dismissed. 14. Regarding ground no. 4, it has been admitted by both the parties that the said ground is not arising out of the order of CIT(A), therefore, sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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