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TMI Blog2024 (9) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 01.04.2005. Thus, we delete the addition on account of disallowance u/s. 40(a)(ia) of the Act. Disallowance of Travelling expenses payment to Music Party and service charges and Production expenses - AO has disallowed 20% of the travelling expenses - HELD THAT:- We find that 20% disallowance is arbitrary. As per the Indian Stamps Act, 1899, a receipt has been defined in Section 2 (23) and is made chargeable in accordance with Article 53 Schedule 1 of the Act. According to Article 53 Schedule 1 of the Indian Stamps Act, 1899, a receipt for any money, the amount of which exceeds Rs. 5000/ is chargeable with stamp duty of Rs. 1/ and as per Section 11 of the Act and Rule 16 of Indian Stamp Rules, 1925, such a receipt is to be stamped with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/2023-24/1059456585(1) dated 08.01.2024. The assessment was framed by the Deputy Commissioner of Income Tax Officer, Media Circle 1, Chennai for the assessment year 2009-2010 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter the Act ), vide order dated 26.12.2011. 2. The assessee raised the following grounds of appeals:- 3. Disallowance u/s 40(a)(ia) amounting Rs. 2,00,000/- The Hon'ble Commissioner of Income Tax(Appeals-14) has not considered the Written submission filed by the Appellant to delete the disallowance made for payment of Hall rent amounting to Rs. 2,00,000/- by invoking provision of section 40(a)(ia) in the assessment order dated 26.12.2011. 4. Disallowance of Travelling expenses payment to Music Party and service char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omes to Rs. 33,695/-. (ii) Disallowance of Under Section 40(a)(ia) Rs. 2,00,000/- The Assessee paid Rs. 3,23,070/- to MMU Hall. Out of this, the Assessee deducted TDS on the payment of Rs. 1,23,070/- and not TDS deducted on the remaining payment of Rs. 2,00,000/-. Therefore applying the provisions of section u/s. 40(a)(ia) for non- deduction of TDS u/s. 194-1, the said sum of Rs. 2,00,000/- is disallowed u/s. 40(a)(ia) of the Act. (iii) Disallowance of certain expenses Rs. 4,01,682/- The Assessee claimed in his profit and loss account Travelling Expenses of Rs. 7,10,122/-, Payment to Music Party expenses Rs. 7,01,800/-, Service charges of Rs. 5,64,320/- and Production expenses of Rs. 6,18,460/-. For the above expenses the Assessee's Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the assessee. (v) Disallowance of Under Section 40(a) (ia) Rs. 4,05,500/- The Assessee was asked to file the TDS deducted details in respect of subcontract payment of Rs. 75,05,500/-. The Assessee's Accountant who appeared on 23-12-2011 has filed TDS Form No.27A for tax deduction on Rs. 71,00,000/-. Thus, it is clear that the Assessee has not deducted TDS on the balance amount of Rs. 4,05,500/- and the same is disallowed. 4. Aggrieved, the assessee filed appeal before the ld.CIT(A) who upheld the order of the ld.AO recording same reasons. Now the assessee is in appeal before us. 5. The ld. Departmental Representative relied upon the orders of the lower authorities in respect of all additions/disallowances. Ground wise disposal as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt for any money, the amount of which exceeds Rs. 5000/ is chargeable with stamp duty of Rs. 1/ and as per Section 11 of the Act and Rule 16 of Indian Stamp Rules, 1925, such a receipt is to be stamped with a adhesive stamp. In this case ld.CIT(A) has not pointed out which receipts are above Rs. 5,000/-. Similarly, without inquiry ld.CIT(A) cannot say the receipts are self-made. Hence, we delete the addition of Rs. 4,01,682/- on account of travelling expenses. III. Disallowance under Sub-contract payment of Rs. 7,00,000/- and Rs. 5,00,000/-:- The ld.AR submitted that the assessee has filed evidence alongwith written submissions. He also asserted that the evidence for TDS made on the same. We find that this issue is not properly verified by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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