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2016 (2) TMI 239 - AT - Income TaxDisallowance of hire charges under sec. 40(a)(ia) - non deduction of tds - CIT(A) deleted the addition - Held that:- The assessee has deducted TDS and deposited the same with the Central Govt. account as prescribed under the Act. The provisions of sec. 40(a)(ia) of the Act is applicable, in case there is a failure on the part of the assessee to deduct TDS and remit the same to the government account. There is nothing in the said section to treat inter alia that the assessee is defaulter where there is shortfall in deduction of TDS. If there is any shortfall due to any difference of opinion as to the taxability of any item or the nature of payments falling under the various TDS provisions, the assessee can be declared to be an assessee in default under sec. 201 of the Act and no disallowance can be made by invoking the provisions of sec. 40(a)(ia) of the Act. Therefore, we do not find any error or infirmity in the CIT(A)’s order, hence, we inclined to uphold the order of the CIT(A) and reject the ground raised by the Revenue. - Decided in favour of assessee Disallowance of expenditure under the head soil purchase, tractor maintenance and other expenses - Held that:-Assessing Officer disallowed 5% under the head soil expenses, 5% under the head tractor maintenance and 10% under the head other expenses. The Assessing Officer was of the opinion that the assessee has not furnished the supporting bills and vouchers for the expenditure debited in the profit & loss account and all the expenditure incurred are supported by self made vouchers, therefore made adhoc disallowance. The CIT(A), confirmed the additions made by the Assessing Officer. Even before us, the assessee has failed to prove the expenditure incurred was reasonable and not excessive. Having regard to the facts and circumstances of the case, we are of the view that the disallowance made by the Assessing Officer and confirmed by the CIT(A) is reasonable, hence, does not call for any interference at this stage. Therefore, we reject the ground raised by the assessee. - Decided against assessee
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