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2012 (5) TMI 734 - AT - Income TaxDisallowances of expenses on wages, petrol hire charges etc. - non deduction of tds - Held that:- ‘Provisions of Section 40(a)(ia) of the Act are applicable only to the amount of expenditure which is payable as on 31st March of every year and cannot be invoked to disallow the expenditure which had been actually paid during the previous year without deduction of TDS.’’ In the present case also, there is no outstanding payment as on 31-03-2008 as the entire payment has already been paid during the year under consideration. Therefore, no disallowance can be made u/s 40(a)(ia) of the Act. Addition u/s 40A(3) - Held that:- If the profit of the assessee has been estimated by applying net profit rate than no separate disallowance can be made on account of any expenditure claimed under profit and loss account. In the present case, we have already held that the ld. CIT(A) was correct in applying the net profit rate. Therefore, no separate disallowance u/s 40A(3) can be made. In view of these facts and circumstances of the case, we hold that the ld. CIT(A) was justified in deleting this addition also.
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