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2010 (1) TMI 882 - AT - Income TaxDisallowance u/s 40(a)(ia) - AO concluded that the assessee was having sub-contract and therefore, the assessee was required to deduct tax at source in respect of payments made to the subcontractors. - Form No.15I has been submitted subsequently and has not been given to the assessee during the financial year relevant to the asst. year under consideration for not deducting the tax at source - Held that:- Once an income has been determined u/s 44AE, then provisions of section 40(a)(ia) will not be applicable. - income of the assessee in respect of transport business is to be determined as per section 44AE(2) as against the income shown by the assessee. Addition u/s 40A(3) - cash payment in excess of Rs. 20,000/- held that:- income has to be ascertained u/s 44AE and therefore, provisions of section 40A(3) will not be applicable. Hence, no disallowance is required to be made u/s 40A(3). Addition on account of low drawings - Assessing Officer has held that the drawings made by the assessee in his books of account were low and accordingly estimated the household expenses of the assessee. After considering the withdrawals made in the books of account, the AO estimated a sum of Rs.76,286/- as undisclosed income utilized for household purposes – Held that:- quantum of expenses towards school fees and considering the fact that the AO has also disallowed part of the car expenses, it will be fair and reasonable if the addition towards low withdrawal is estimated to Rs.40,000/-, appeal of the assessee is partly allowed.
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