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2014 (1) TMI 950 - AT - Income TaxDeletion made u/s 40(a)(ia) of the Act - Non-compliance of Provisions of section 194C of the Act Held that:- The provision of section 194C of the Act was not applicable in the case of the assessee - there was no contract between the assessee and the truck owner for carrying out any work of transportation - The assessee had made payment in aggregate of Rs.50,000/- to various truck owners - The revenue has not brought before us any cogent materials to establish that the assessee had made payment to the truck owners pursuant to a contract for carrying out the work of transportation thus, the revenue has not established that the provisions of section 194C of the Act are applicable in the assessee's case consequently attracting the provisions of section 40 (a) (ia) of the Act Decided against Revenue. Disallowance of payment of incentive to the drivers Held that:- The decision in Shree Dhain Auto Transport Corporation Versus The Asst. CIT, Circle-5, Vadodara [2012 (9) TMI 730 - ITAT AHMEDABAD] Followed - if an assessee is maintaining accounts on mercantile system and a liability accrued, though discharged at a future date, held to be an allowable deduction while working out the profit and gains - The incurring of the liability was ascertainable for the year under appeal, therefore it is to be satisfied that it was not a contingent liability Decided against Revenue.
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