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2014 (4) TMI 164 - AT - Income TaxDisallowance u/s 40(a)(ia) of the Act Subscription paid to M/s Baker Tilley International Held that:- The decision in M/s KS Aiyar & Co. Versus The Asst. CIT Rg. 11(2), Mumbai [2013 (6) TMI 570 - ITAT MUMBAI] followed - The relevant clause, specifies that the company shall not constitute any partnership, joint venture or agency relationship with its members - the subscription paid to BTI does not involve any income element and therefore, the provisions of TAS shall not be applicable the order of the CIT(A) is upheld for deleting the disallowance made by the A.O. u/s 40(a)(ia) of the Act Decided against Revenue. Disallowance u/s 40(a)(ia) of the Act - Payment made to sub-contractor and international affiliates - Short deduction of TDS Held that:- The decision in CIT vs. S.K. Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT] followed - the disallowance by invoking the provisions of section 40(a)(ia) of the Act can be made only when there is failure on the part of the assessee to deduct the tax at source and not in case where there is only short deduction of tax at source the order of the CIT(A) is upheld in deleting the disallowance made by the A.O. u/s 40(a)(ia) of the Act for short deduction of tax at source Decided against Revenue. Addition on account of un-reconciled entries of AIR Held that:- The contention of the assessee is accepted that the addition on account of un- reconciled difference in AIR should be restricted to Rs. 10,830/- as the assessee is admittedly following cash system of accounting thus, the addition made by the AO and confirmed by the CIT(A) is restricted to that extent Decided partly in favour of Assessee. Disallowance on payment to legal heir of the deceased partner Held that:- The decision in M/s KS Aiyar & Co. Versus The Asst. CIT Rg. 11(2), Mumbai [2013 (6) TMI 570 - ITAT MUMBAI] followed - the payment has been made by the firm to the legal heir of its deceased partner, as per the clauses of the partnership deed dated 1.4.2000 having unequivocal covenants thus, the amount paid to the legal heir of the deceased partner is an allowable expense Decided in favour of Assessee. Disallowance of 1/5th of telephone and conveyance expenses Held that:- some disallowance on account of personal use of the telephones and conveyance of the assessee firm by its partners is very much called for and it would be fair and reasonable to make such disallowance at 1/10th of the total expenses claimed by the assessee towards telephone and conveyance expenses thus, the order of the CIT(A) modified Decided partly in favour of Assessee. Deduction u/s 80G of the Act Held that:- The claim of the assessee for deduction u/s 80G of the Act made in the form of revised return was not considered by the AO and the CIT(A) did not give any direction to the AO to consider the same as sought by the assessee on the ground that the proof of filing of revised return was not filed by the assessee before him - assessee has filed such proof and made a request that the matter may be restored to the file of the AO for considering the claim of the assessee for deduction u/s 80G of the Act on merit as made in the revised return thus, the matter is remitted back to the AO for fresh consideration Decided in favour of Assessee.
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