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2012 (4) TMI 655 - AT - Income TaxNon deduction of tds - amounts of expenditure which are payable - Held that:- Addition made by Assessing Officer and sustained by Ld. CIT(A) by invoking the provisions of Section 40(a)(ia) of the Act are hereby deleted as the provisions of section 40(a)(ia) of the Act are applicable only to the amounts of expenditure which are payable as on the date 31st March of every year and it cannot be invoked to disallow which had been actually paid during the previous year, without deduction of TDS. Disallowance of telephone expenses, petrol expenses and depreciation of car - Held that:- We find that assessee has incurred small amount under the head of telephone, petrol expenses etc., and therefore Assessing Officer was not justified in making ad hoc disallowance at the rate of 20% of total expenses incurred by the assessee. The disallowance appears to be on higher side, therefore we restrict this addition to 10% of the total expenses and AO is directed to recalculate the disallowance accordingly. This ground of assessee is partly allowed.
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