Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 573 - AT - Income TaxDisallowance u/s 40(a)(ia) of the Act - Payment of management fee – TDS not deducted – Held that:- The net amount is required to be grossed up for the purpose of deduction of tax at source- the assessee made deduction of tax at source @ 10% of the net amount paid - it appears that the assessee did not furnish any details about deduction of tax at source from this management fee and its resultant payment –thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Revenue. Expenses incurred as Fees and subscription – Held that:- The AO proceeded to make disallowance by observing that the assessee purchased some software against which the subscription/fee was paid - without examining the actual detail of such expenses, the AO went on to make addition - the details of expenses which do not relate to software purchase as was made out by the AO, were sent to him for remand report - he considered it expedient not to offer any comment. There was no reason to deviate from the finding recorded by the CIT(A) that such expenses were not for software purchase but revenue in the nature towards fees and subscription – Decided against Revenue. Addition of communication and travelling expenses – Held that:- The AO was not justified in disallowing the entire expenditure of ₹ 1.25 crore merely on the ground that this expenditure was excessive in comparison with the preceding year - the assessee did not file any details of such expenses, but the assessee did furnish the necessary details of such expenses on various dates – thus, the order of the CIT(A) does not require any interference – Decided against Revenue.
|