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2017 (9) TMI 1699 - ITAT PUNEDisallowance of proportionate interest - Held that:- CIT(A) while granting partial relief has noted that no reasons were provided by the assessee for advancing interest free advances. Before us also assessee has not placed any material on record to demonstrate the commercial expediency. We further find that Ld.CIT(A) has noted that on perusal of the ledger account of M/s. Hira Enterprises as well as the copy of bank statement of Kharad Urban Co-operative Bank that amount advanced to sister concern was through the cash credit account. CIT(A) by a well reasoned and detailed order has decided the issue and granted partial relief to assessee. CIT(A) further directed to disallow the proportionate interest. Before us, assessee has not placed any material on record to controvert the findings of CIT(A). No reason to interfere with the order of CIT(A) and thus this ground of the assessee is dismissed. TDS u/s 194C - Disallowance u/s 40(a)(ia) - non deduction of tds on printing charges, loading and unloading charges, payment of rent and interest - Held that:- Punjab and Haryana High Court in the case of CIT, Ludhiana Vs. Deputy Chief Accounts Officer, Markfed Khanna Branch [2008 (2) TMI 260 - PUNJAB AND HARYANA HIGH COURT] has held that when assessee had purchased printed packing material from manufacturer for purpose of packing of its finished products and no raw material was supplied by it to manufacturer for manufacturing such packing materials transaction was a “contract of sale” and not a “works contract” and therefore it was outside the purview of Sec.194C of the Act. We are of the view that no disallowance u/s 40(a)(ia) of the Act was called for on the payment of printing charges paid by the assessee. With respect to the other expenses on which the disallowance has been confirmed by CIT(A), before us, assessee has not placed any material to controvert his findings and therefore to the extent of such disallowance, no interference to the order of Ld.CIT(A) is called for.
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