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2012 (12) TMI 242 - AT - Income TaxDisallowance of salary and interest paid to partners - compliance of furnishing the Partnership Deed during the course of assessment proceedings – Held that:- Payment of interest and salary to the partners is to be allowed since the certified copy of the partnership deed was made available to the A.O. in the course of assessment proceedings - provisions of Section 184 of the Income tax Act, 1961 are directory and not mandatory – defect of not filing copy of partnership deed with return of income is a curable defect. - in favor of assessee Disallowance of expenses of Hire charges of Trucks – alleged that these three vehicles were transferred to the name of the respective subcontractors only on 21.03.2005 and prior to such transfer, these vehicles were registered in the name of the assessee – Held that:- Assessee has already debited all these expense in respect of these vehicles in its books of account, no further deduction is allowable to the assessee on account of hiring of these tankers. But we find force in this contention that all operating expenses of these three tankers should be allowed as deduction to the assessee - assessee has to establish that in addition to Rs.8,08,995.22, any other expenditure was incurred on the vehicles and the same were not debited by the assessee but were debited by the so called contractors, that deduction should be allowed to the assessee for such expenses if the assessee can satisfy the A.O. about allowability of such expenses - ground is allowed for statistical purposes. Disallowance u/s. 40(a)(ia) of the I.T.Act – Held that:- No tax was deductible by the assessee in view of the certificate issued by the A.O. of these subcontractors u/s 197(1) of the Income tax Act, 1961, no disallowance is justified u/s 40(a)(ia) of the Income tax Act, 1961 but since we have confirmed the disallowance for the reasons stated in the above para, this ground is of academic interest only - appeal of the assessee stands allowed.
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