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2015 (6) TMI 410 - AT - Income TaxDisallowance of bus maintenance and bus spares and consumables charges - CIT(A) restricted disallowance - Held that:- We do not find any reason to sustain the adhoc disallowance made by the Commissioner of Income Tax (Appeals). Thus, we delete the addition of ₹ 2,00,000/- made under the head bus maintenance, bus spares and consumables. - Decided in favour of assessee. Disallowance of bus hire charges - Held that:- It is not disputed that assessee hired vehicles from various parties and those vehicles were in turn used for transporting students of Sri Venketeshwara Engineering College, Sriperumbudur. In such circumstances, it cannot be ruled out that assessee has made payments to those parties for hiring buses. The assessee has returned receipts from the business of transportation of students at ₹ 57,05,083/-. The parties might not have responded to the letters issued by the Assessing Officer in view of strained relationship with the assessee. On this ground alone, the payments made to those parties for hiring buses by the assessee cannot be doubted. In these circumstances, we delete the disallowance - Decided in favour of assessee. Disallowance under section 40(a)(ia) - non deduction of tds - Held that:- Provisions of section 40(a)(ia) have no application in case the payments were made within the accounting year. Since the assessee has made the payments within the accounting year, the provisions of section 40(a)(ia) have no application.- Decided in favour of assessee.
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