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2013 (10) TMI 1365 - AT - Income TaxTDS u/s 194C - non deduction of tds - addition u/s 40(a)(ia) - Held that:- Provisions of section 194C(3) are not applicable in the case of assessee and as such, the assessee is not liable to deduct TDS. Therefore, the addition is wholly unjustified. Disallowance of truck freight expenses - Held that:- The authorities below have correctly made disallowance out of the aforesaid expenses. The Explanation to section 37 of the IT Act provides that any expense incurred by the assessee for the purpose which is an offence or prohibited in law shall not be deemed to have been incurred for the purpose of business or profession and no deduction shall be made in respect of such expenditure. The reimbursement of the amount paid for violation of traffic rules is not proper because the challans amount is paid for violation of law and offence committed relating to Motor Vehicle Act. Similarly, payments made to bribing police, Inams is not the expenditure permissible under the law of land. Therefore, disallowance is justified. Disallowance of repairs and maintenance - Held that:- The addition is adhoc in nature without pointing out any specific vouchers not produced before the AO. The assessee maintained books of account, which are audited and were produced before the AO. The AO made disallowance without pointing out any specific inadmissible expenditure and in order to cover up possible leakages of income, which would suggest that the addition is adhoc in nature. Therefore, the addition is wholly unjustified.
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