1986 (10) TMI 65

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..... reas proper and regular books of account have been maintained and are fully vouched: . . . Rs. (a) Out of medical expenses 5,000 (b) Out of Mess expenses 4,000 (c) Out of Vehicle maintenance 6,500 2. That the lower courts have erred in law as well as in fact in charging the interest amounting to Rs. 3,533 under s. 201A for not deducting the tax at source on payments made to labour mates. 3. That the order passed is against merits, circumstances and legal aspects of the case." Ground No. 1(a) Medical expenses Rs. 5,000 4. In the grounds of appeal, it has been contended by the assessee that it maintained proper and regular books of the medical .....

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..... ifiable. Having taken into account the aforesaid facts and circumstances of the case, we are of the opinion that the disallowance is towards higher side. We accordingly restrict it at Rs. 2,000. Ground No. 1(c) Vehicle maintenance Rs. 6,500. 6. The assessee claimed before the ITO expenses on account of maintenance of Vehicles, telephone expenses at Rs. 1,09,779 and the ITO disallowed a sum of Rs. 7,500 following the past history of the assessee. On appeal the CIT (A) held that the disallowance was slightly excessive and accordingly he restricted the same at Rs. 6,500. We have considered the submissions of the departmental representative and have gone through the orders of the authorities below as well as the grounds of appeal taken by t .....

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..... erence between labour mates and the sub-contractors as they had actually executed some job and thereafter payment vouchers were prepared. The CIT (A), therefore, after considering the facts and circumstances of the case, was of the opinion that ITO was quite justified in holding that the assessee was under an obligation to deduct tax from payment to labour mates or labour contractor and in charging interest on such tax not deducted. Thus, he confirmed the order of the ITO. 8. The assessee was absent as noted above and the only point for consideration is whether the labour mates can be equated with the sub-contractors. It is a matter of common knowledge that the main contractor from the point of view of convenience generally engages sub-co .....

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