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2015 (7) TMI 152 - AT - Income TaxAd-hoc disallowance of 2% of transport expenses - Held that:- The disallowance has been made by raising trivial objections. It has not been disputed by the Revenue that the assessee is not maintaining books of account regularly. The accounts of the assessee are subject to audit and no material discrepancy whatsoever has been indicated by the Assessing Officer. The ad-hoc addition of 2% is made merely on surmises and conjectures. Accordingly, the same is deleted. - Decided in favour of assessee. Disallowance u/s. 40(a)(ia) r.w.s. 194C - Held that:- In the facts of the present case, the ratio laid down in the case of CIT Vs. Poompuhar Shipping Corpn. Ltd. (2006 (1) TMI 60 - MADRAS High Court) is squarely applicable. Therefore, we accept the contentions of the assessee that the payments made by the assessee to the owners of the hired truck do not fall within the ambit of section 194C of the Act. Since, the payments made by the assessee to the owners of hired trucks have been held out of the scope of section 194C, the defect in Form No. 15I as pointed by lower Authorities will have no consequences. Accordingly, we direct the Assessing Officer to delete the disallowance u/s. 40(a)(ia) r.w.s. 194C of the Act.- Decided in favour of assessee.
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