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2016 (2) TMI 1024 - AT - Income TaxGross profit rate adopted in making treating addition adopting the gross profit rate of the preceding year - Held that:- CIT (A) has admitted that there is a possibility of discrepancies in party accounts and the same cannot be ruled out due to lack of proper reconciliation as well as the stock register was not maintained by the assessee but the CIT(A) also has given a finding that all the payments were made through banking channels and assessee has given ledger account and copies of letters of credit before the Assessing Officer. The assessee company also submitted confirmation of the parties as per the Assessing Officer ’s enquiry. The CIT(A) has rightly added ₹ 10 lacs and deleted the remaining disallowance. Hence, Ground No. 1 to 7 will not sustain. Disallowance u/s 40(a)(ia) - non deduction of TDS by making the payment for the various expenses - Held that:- CIT(A) has given a finding that in all respective salary and wages there was no payment which was made above 50,000/- and, therefore, the same is not coming under the purview of Section 194C for TDS deduction. The record also speaks the same. The remand report also has not stated that there was a payment more than ₹ 50,000/- to any of the administrative staff or outsiders related to the expenses. Hence, these grounds are also not sustainable. Salary expenses disallowed - Held that:- As relates to expenditure under the head salary the assessee filed the details before the Assessing Officer and the same was not controverted by the Assessing Officer in the remand proceedings. Thus, this ground also does not sustain. Revenue appeal dismissed.
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