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2014 (1) TMI 1360 - AT - Income TaxProfessional fees - Held that:- The assessee has made two payments to two different parties - NSPL and NSCPL - Out of the two parties only NSCPL was engaged in accomodation entries - Only payment made to NSCPL shall be disallowed which have already been disallowed by the assessee himself in its return of income - If it would again be disallowed it will constitute double disallowance - Decided in favour of assessee. TDS - whether the payment made by assessee to various mandals for putting its banner and hoarding are in the nature of advertisement expenses - Held that:- As per the CBDT circular dated 08.08.1995 - When there is a contract for putting up hoardings in the nature of advertising contract, provisions of section 194C of the Act would be applicable - If a space is taken on rent and the banners are put on the said space, so hired, they are for the purpose of gaining publicity - Mere publicity could not be a criteria to decide whether the said payments is subject to provisions of section 194C of the Act or section 194I of the Act - The CIT(A) has stated that assessee has made payments to the Mandals etc under a contractual obligation - During the Utsav/festivals seasons the organizers provide space to various persons to put its banners and charge fee from them, not only that the purpose to advertise their products but for providing space to them - The said payment to the mandals could be treated towards rent for the space provided by them to the assessee for putting its hoarding and banners - TDS was required to be deducted u/s 194I of the Act - Decided in favour of assessee. Miscellaneous expenses for purchase of mobile phones - Held that:- The expenditure has been incurred on mobile phones and LCD on which assessee is entitled to claim depreciation - The expenditure are capital expenditure forming part of block of assets - Decided against assessee.
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