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2018 (11) TMI 1738 - AT - Income TaxBogus remuneration paid - disallowance u/s.40(a)(ia) of the Act as the payment was made to contractors or to the supervisors - HELD THAT:- We find that the CIT(A) while dealing with the disputed issue has observed that even if income has not been shown by the Directors is considered, the addition should have been resorted in respective hands of Directors and not in the hands of assessee's company and deleted the addition. Payment made to labour without deducting TDS - HELD THAT:- Do not find in disallowance made by the AO as the payment has not been made to any contractors but to Supervisor to monitor the work and to make labour payment. Hence section 194C does not attract in this case and therefore consequential disallowance u/s 40(a)(ia) is also not attracted. Disallowance under the head Architect Drawing & MAP Approval - HELD THAT:- AO has observed that ₹ 3,80,000/- has been debited by the assessee under the head Architect Drawing & MAP approval, and disallowed same, however, on calculation of 10% disallowance of the total expenditure of ₹ 6,10,410/-, the AO has wrongly mentioned as ₹ 3,38,000/- instead of ₹ 3,80,000/-. The CIT(A) has also overlooked the same. Therefore, we restore this disputed issue to the file of Assessing Officer for a limited purpose and direct the Assessing Officer to consider the actual expenses. Interest u/s. 234B - HELD THAT:- As relying on AJAY PRAKASH VERMA [2013 (1) TMI 140 - JHARKHAND HIGH COURT] direct the AO to recomputed the interest u/s.234B on the basis of total income declared by the assessee in the return filed.
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