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2015 (10) TMI 1415 - AT - Income TaxTDS u/s 194C not deducted - Addition made under section 40(a)(ia) - assessee involved in sizing work - Held that:- Special Bench of the Tribunal in the case of Merilyn Shipping and Transports v. Addl. CIT (2012 (4) TMI 290 - ITAT VISAKHAPATNAM ) and judgment of CIT v. Vector Shipping Services (P.) Ltd. [2013 (7) TMI 622 - ALLAHABAD HIGH COURT] held that section 40(a)(ia) is not applicable when there is no outstanding balance at the end of the close of the year relevant to the assessment year in respect of these payments. However, the assessee has not brought on record, the details of outstanding expenses or schedule of sundry creditors showing whether the impugned amount is outstanding at the end of the close of the previous year relevant to the assessment year either in the name of the party or outstanding expenses. Hence, in the interest of justice, we are remitting the issue back to the file of the Assessing Officer with direction to verify the claim of the assessee and the assessee shall place necessary evidence in support of his claim. Further, we make it clear that if the impugned amount is not outstanding at the end of the close of the assessment year in respect of the expenses either as outstanding expenses or as sundry creditors, this amount cannot be disallowed. This ground is remitted back to the Assessing Officer for fresh consideration. - Decided in favour of assessee for statistical purposes. Disallowance at 20 per cent. on weaving charges - Held that- Ad hoc disallowance made by the Assessing Officer at 20 per cent. on the ground that supporting vouchers are self-made vouchers is on higher side. In our opinion, it is appropriate to disallow only 10 per cent. of weaving charges supported by self-made vouchers - Decided partly in favour of assessee.
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