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2016 (12) TMI 1665 - AT - Income TaxTDS u/s 194C - disallowance made u/s 40(a)(ia) - non deduction of tds to payment paid to National Trading Co. - Held that:- If the payee has disclosed the said receipt in his return and paid taxes thereon the assessee should not be invited with disallowance u/s. 40(a)(ia) of the Act by treating him as the assessee in default. We direct the AO to verify the same and dispose of the issue accordingly. Ground No.1 of appeal of assessee is allowed for statistical purposes. Disallowance towards petty freight , warehousing and transportation expenses - Held that:- The details have been duly filed by the assessee duly complying with the provisions of TDS with due remittance thereon. In respect of the balance sum of ₹ 43,978/-, the ld AR argued that the same only represents petty freight and transportation expenses incurred on various dates throughout the year by making payments to various parties which do not warrant any deduction of tax at source in view of the limit prescribed u/s 194C of the Act. We find that the assessee had furnished the details of various expenses as and when called for by the ld AO during the course of assessment proceedings. We find lot of force in the argument of the ld AR that this is a general routine business expenditure incurred by the assessee and accordingly have no hesitation in directing the ld AO to delete this disallowance. Accordingly, the Ground No. 2 raised by the assessee is allowed.
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