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2017 (1) TMI 1547 - AT - Income TaxTDS u/s 194C - payee furnishing PAN to the payer - Held that:- The provision contemplated in Sec 194C(6) permits no deduction of TDS shall be made u/s. 194C(1) if the payee furnishes PAN to the payer. We find that the requirement of Section 194C(6) of the Act submission of Permanent Account Number which enable the payer from no deduction of TDS. In the present issue as discussed the fact remains admitted the payees furnished PANs to the Assessee, but, the Assessee could not furnish the same to the prescribed authority within time and whether such failure attracts the addition and disallowance under section 40(a)(ia)of the Act, in our opinion there is violation of section 194C(7) and disallowance under section 40(a)(ia) does not arise - Decided in favour of assessee. Addition on account of GIFT treating the same as bogus expenses - Held that:- Assessee made piecemeal payments for purchase of Diary, Calendar, Pen from “Uma Chabighar' and shirt and trouser pieces from “Shamsundar Bastralaya" and treated said amounts as "credits" and in our opinion the Assessee correctly done so as the Assessee did not have received the items from the said two parties - finding of the AO was that the payments should not have been treated as credits and should have been offset on receipt of items ordered - Assessee had shown the expenses on gifts in the books of accounts by directly debiting the expenses in the cash book and without routing the same through the concerned supplier account. Thus assessee has correctly debited in the Profit & Loss Account and since there is no dispute that the expenses under the head Gift to customer so incurred were incidental to business and could not be said that the expenses were disallowable - Decided in favour of assessee.
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