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2015 (7) TMI 1303 - AT - Income TaxTDS u/s 194C - assessee’s receipts were below audit limit u/s 44AB - tds liability - Held that:- Because the provisions of section 194C as it stood prior to 01.06.2008 provided that in case of individual or HUF whose total sales, gross receipts or turnover from business or profession does not exist monetary limits specified u/s 44AB during the financial year immediately preceding the financial year in which such sums is credited or paid then he has no liability to deduct income tax u/s 194C(2). It is has not been rebutted that assessee’s turnover in the immediately preceding financial year had not exceeded monetary limit specified u/s 44AB and this fact also gets strengthen by the order of the Tribunal as relied by the Ld. Counsel. Accordingly, the assessee was not liable to deduct TDS, therefore, no disallowance u/s 40(a)(ia) can be made. Thus Ground no. 1, as raised by the assessee is allowed. Ad-hoc disallowance on account of salary and various other expenses - Held that:- We find that disallowances has been made on ad-hoc basis whereby 50% of the salary has been disallowed. The assessee in the paper book has filed details of employees giving their designations and addresses to whom the salary was paid during the year. If such details are on record which has not been rebutted, then no ad-hoc disallowance on account of salary can be made. Accordingly, the disallowance under the head salary stands deleted. Disallowance of depreciation - Held that:- Disallowance made by the Assessing Officer and confirmed by the CIT(A) are slightly excessive looking to the nature of expenses, therefore, we restrict the disallowance at 10%. The assessee will get part relief on this score. 10. Regarding disallowance on depreciation on computers, we find that the same was made on the ground that computers were put to use after September, 2006 therefore, disallowance have been made for half of the year instead and full year as claimed by the assessee. This finding of fact as recorded by CIT(A) and AO has not been rebutted because, therefore, such a finding of the CIT(A) confirming the said disallowance is affirmed.
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