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2019 (12) TMI 1537 - AT - Income TaxTDS u/s 194A - non deduction of TDS on interest paid to non-banking financial companies - Addition u/s 40(a) (ia) - HELD THAT:- Admittedly, assessee has not deducted TDS under section 194 A of the act against interest paid to nonbanking financial companies. It is also an admitted fact that the companies to whom assessee has made payments are repeated companies like M/s. L & T Finance Ltd., M/s. Bajaj Finance Ltd., M/s. Reliance Capital Ltd., M/s. India Bulls Ltd., M/s. Diamler Finance Ltd., M/s. Kotak Mahindra Bank Ltd., and M/s. Tata Capital Ltd., who are regular assessee’s under Income tax Act. As Ld. AR filed before us certificate issued by chartered accountant which was not filed before authorities below, it is necessary that the same is to be verified. We set aside this issue to Ld. AO for due verification of the facts and to consider the claim in accordance with law. Addition on account of wages expenditure not adequately backed up by primary documents - HELD THAT:- AO has not rejected the books of accounts - as per CIT (A) there is no finding by Ld. AO that expenditure incurred and claimed by assessee is either capital in nature or personal or wholly and exclusively not incurred for the purposes of business - CIT (A) observed that no defect has been pointed out by Ld. AO in any of specific vouchers - As observed that the disallowance made by Ld. AO is on purely ad hoc basis of 10% - AO has not doubted bona fides of such expenditure. Under such circumstances we do not find any reason to interfere with the view adopted by Ld. CIT (A) and the same is upheld. Addition u/s 14A r.w.r 8D(iii) - DR submitted that assessee earned exempt income and whenever there is an exempt income earned certain indirect/common expenditure could always be attributable to such receipts - HELD THAT:- . Admittedly assessee has earned exempt income and no new investment has been made by assessee during the year under consideration. Further Ld. CIT (A) has observed that all old investments by assessee have been carried out of internal generated funds and that no borrowed funds have been utilised for investments that have been made in the past. No infirmity in the order of Ld. CIT (A) in restricting disallowance to the extent of exempt income earned during the year.
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