9911796707
TMI Blog2020 (2) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income Tax (Appeal) XX New Delhi is bad in facts and in law. 2. That the Ld. CIT (A) has not been pleased to appreciate the evidence and other material on record properly. 3. That the Ld. CIT (A) has erred in confirming the addition of statutory liability of Rs. 5,33,700/- on account of TDS deducted U/s 194 J, payable for the month of March 2013, which was duly deposited on 11th April 2013, wrongly considering it as non applicability of section 43B of the Income Tax Act,1961 in case of appellant, as the appellant is following cash of accounting under sec 145 of the Income Tax Act, 1961. The same was duly deposited by the appellant within the time stipulated under sec. 43B the Income Tax Act, 1961. Therefore, no part th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry for adjudication of the controversy at hand are : M/s. Gagrat & Co. is a partnership Firm of Advocates, practicing at Supreme Court by profession and derived income from business or profession and income from other sources. The assessee comprising of two partners namely Sh. R.J.Garrat and Sh. U.A.Rana having share of profit in the Firm at 40% and 60% respectively. AO made addition of Rs. 5,33,700/- by way of disallowance of TDS on the ground that the same should have been paid during the financial years by the Assessee as it has been following cash system of accounting. AO also made addition of Rs. 4,29,274/- out of the total of partner's salary of Rs. 57,00,000/- on the ground that the assessee has revised the partnership deed just few ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e date specified in Section139(1) of the Act. However, on the other hand the Ld. DR for the revenue relied upon order passed by AO as well as CIT(A). 6.1 Undisputedly the TDS deducted by the assessee u/s 194J for the month of March, 2013 has been duly paid on 11th March, 2013 which is well before the due date specified in Section139(1) of the Act. When the assessee has duly deposited the TDS before filing the return of income for the year under assessment, the same is allowable u/s 43B of the Act. No doubt, the assessee is following the cash method of accounting and has made cash payment to various parties after deducting TDS, the portion of which has been allowed by the AO as deductible expenditures, U/s 198 of the Act tax deducted at sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll as Ld. CIT(A) have erred in making disallowance of Rs. 5,33,700/- on account of TDS, hence, ordered to be allowed / deleted. So ground no. 3 is determined in favour of the assessee. GROUND NO. 4 7. AO/ Ld. CIT(A) have made / confirmed addition of Rs. 4,29,274/- out of partner's salary of Rs. 57,00,000/- paid to Mr. U.A. Rana on the ground that partner's salary has been revised just before the few dates of the end of financial years. Ld. DR for the Revenue relied by the order passed by AO as well as Ld. CIT(A). 7.1 Undisputedly as per clause 8.1 of the partnership deed dated 1st April, 2011 partners salary is fixed at Rs. 48,00,000/- per annum however, as per the amended partnership deed dated 28.03.2013 salary of partner namely Sh. U. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed 15% i.e. Rs. 29,057/- on account of personal use. However, Ld. CIT(A) has restricted the disallowance of telephone expenses at 10%. The Ld. AR for the assessee contended that in the earlier years A.Y. 2011-12, Ld. CIT(A) had restricted the disallowance to 8% of the total claim on account of personal nature of the expenses. 9. We are of the considered view that keeping in view the fact that as against the gross receipt of Rs. 5.93 crore, Assessee has claimed telephone expenses of Rs. 1,93,712/- which is merely 0.32% of the gross receipts, we are of the considered view that Ld. CIT(A) in A.Y. 2011-12 has rightly restricted the personal nature of telephone expenses of the assessee to 8% of the total claim. So the Revenue is requir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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