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TMI Blog2021 (8) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... e i.e. before the date on which return of Income u/s 139(1) of the Act has to be filed. Thus, Section 40(a)(ia) will not be applicable in the present case. Therefore, Ground Nos. 4, 7(c) and (d) are allowed. Disallowance of expenses to the extent of 1/10th - AR submitted that all the staff welfare, convenience expenses, general expenses as well as telephone expenses are either below ₹ 20,000 or ₹ 40,000/- and, therefore, some payments were made in cash or through vouchers.- HELD THAT:- It is pertinent to note that the Assessing Officer has simply rejected all these expenses stating in the Assessment order that the assessee could not produce proper vouchers. But from the perusal of the records which was before the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) have erred in disallowing and adding a sum of ₹ 21,516.00 and ₹ 14,375.00 as TDS payable on others salary respectively to the returned income. 5. That the Id. AO and the CIT (Appeal) have erred in disallowing and adding a sum of ₹ 6300.00 towards Professional Tax payable to the returned income . 6. That the provision of section 43B of the Income Tax Act 1961 overrides and is applicable irrespective whether the accounts are maintained under cash system or mercantile system of accounting. 7. That in the alternative, the id. AO be directed to allow the following payables as deductions in the following Assessment Year under cash system of accounting being consequential relief. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is a partnership firm and derives income from profession of Chartered Accountancy. Return of income was filed by the assessee for the Assessment Year 2013-14 on 30/09/2013 declaring a total income of ₹ 53,70,280/-. During the course of assessment proceedings the assessee produced original books of accounts, bills, vouchers, salary record, log book disposal. The Assessing Officer disallowed the expenses which according to the Assessing Officer have not been paid in the relevant Financial Year. The Assessing Officer further disallowed interest on service books as well as earlier year service tax. The Assessing Officer also disallowed the wealth expenses, staff welfare expenses, car maintenance expenses, general expenses, telephone exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash system of accounting whereby only payments which have been made during the year can be claimed as expenses and as these expenses are not paid, the same cannot be allowed as expenses. 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the Assessing Officer is not disputing the accounting method of the assessee which is cash system. In fact, the Assessing Officer as well as the CIT(A) is admitting that TDS has been deducted by the concerned party while crediting the account of the assessee and deposited into government account as per 26AS of the assessee. The assessee has made TDS payment before the due date of filing of the return under Section 139(1) which emerges ..... X X X X Extracts X X X X X X X X Extracts X X X X
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