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2013 (6) TMI 430 - ITAT DELHIDisallowance of transactions in excess of job work charges - Payment to related parties - sectin 40A(2) - Held that:- AO has not invoked the provisions of s.40A(2) but has disallowed the expenses only on the ground of being not verifiable and not incidental to the business of the appellant. Such observations of the AO are out of the context when admittedly the amounts were credited on account of payment of excise duty. The payments made on account of excise duty are verifiable from the copy of accounts itself. Hence, the disallowance made by the AO is not sustainable and accordingly deleted. In favour of assessee. Disallowance u/s 40A(ia) - assessees submission that he deducted tax at source and remitted the same to the government on 27.5.2005 i.e. before 31.5.2005 - Held that:- As per the provisions of Rule 30(1)(b)(i)(a) of the Income Tax Rules, 1862, the tax deducted at source in question is required to be paid within two months from the last day of the Accounting year i.e. on or before 31.5.2005. Thus the remittance was within time. Hence dismiss this ground of Revenue. Disallowance of the expenses - Held that:- AO has without asking for details disallowed in an adhoc manner the above said expenses. D.R. could not controvert the factual findings of the CIT(A). In favour of assessee.
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