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2013 (7) TMI 33 - AT - Income TaxPayment of incentive to five staff members - CIT(A) deleted the addition in part - Held that:- The assessee has produced before the AO evidences of payment of incentives and also letter from "MML" being the principal, setting target for the assessee. Therefore, it could not be presumed that the assessee has not paid any incentive. As before the authorities below, the assessee has given evidence of payment of commission, but has not got confirmation from the persons to whom the payment was made, thus CIT(A) was justified in confirming the disallowance to the extent where the assessee failed to give confirmation letter. Therefore, this ground of the Revenue's appeal is dismissed. Jeep's transportation expenses - non deduction of TDS - AO has made disallowance of the payment made by the assessee to the drivers holding that such payment was made to "NAW" under the contract - CIT(A) deleted the addition - Held that:- "NAW" is an authorised transporter of "MML". It is not coming out of the order of the AO, whether, the assessee had made payment to "NAW", and such amount was credited to the account of "NAW". The AO has also not examined the claim of the assessee that Rs.4,000/- was inclusive of premium of freight charges and other expenses. The AO has made allowance on the presumption of contract between the assessee and "NAW" but no enquiry is made from "NAW" whether any payment for transportation of jeep was received by it under such contract. However, CIT(A) has categorically given a finding that the AO has not made any inquiry with the "NAW". Thus AO has only presumed that there were some contract between the assessee and the "NAW". However, no evidence to this fact was placed on record. CIT(A)'s order confirmed.
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