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2015 (3) TMI 889 - AT - Income TaxDisallowance u/s 40(a)(ia) - deposit of tds into the credit of the Central Government account after the due date prescribed under section 200 - CIT(A) deleted the addition - Held that:- As pointed out by the appellant and accepted by the Assessing Officer in the remand report, individuals were not required to deduct tax under section 194C prior to June 1, 2007. Hence, since tax was not deductible by the assessee, no disallowances can be made under sec tion 40(a)(ia) for the present assessment year even though the tax deducted was paid beyond the date provided in section 200(1). Thus accept the submission of the appellant, which has been endorsed by the Assessing Officer in the remand report, that since tax was not deductible under section 194C, no disallowance could be made under section 40(a)(ia). The disallowance of ₹ 9,09,421 made by the Assessing Officer is, therefore, deleted. - Decided in favour of assessee. Additions on account of excessive consumption, invisible loss shown by the assessee - Held that:- We were impressed by the demonstration shown before us that how particular nut was carved out of a solid piece and of balance solid material can be used only as a scrap. There is a further argument that when records of the assessee have been accepted by the excise authorities then how same can be doubted by the Income-tax authorities. However, at the same time it is also a fact that the assessee has changed certain figures twice though learned counsel for the assessee tried to justify the same. We do not find much force in them. However, at the same time it cannot be denied that the assessee has suffered excessive shortage because of sophisticated nature of products and same was within the norms given by various Government agencies. Therefore, in our opinion, in this case ultimately the wastage has to be estimated on reasonable basis. Considering overall facts of the case, we are of the opinion that the ends of justice would be met if an addition of ₹ 10 lakhs is made on account of excessive wastage/invisible loss. Therefore, we set aside the order of the learned Commissioner of Income-tax (Appeals) and direct the Assessing Officer to make total addition of ₹ 10 lakhs on account of wastage and invisible loss, etc. instead of three additions of ₹ 9,09,421, ₹ 2,79,398 and ₹ 19,89,240. This position was accepted by learned counsel for the assessee as well as the son of the assessee. - Decided partly in favour of assessee.
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