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2016 (10) TMI 1355 - AT - Income TaxDisallowance u/s 40A(3) for Freight Outward Expense and for freight Inward Expense - HELD THAT:- It is an undisputed fact that the genuineness of the payments have not been doubted by the revenue authorities. It is also an admitted fact that the assessee has deducted tax at source from the applicable rates and the TDS has been deposited in the government account. It is also an admitted fact that the nature of business of the assessee is such that it has to hire transport operators for the movement of its goods, raw material as well as finished. We have no hesitation to hold that in the present case also neither the genuineness of the payment nor the identities of the payee were in any case doubted. Considering the totality of the facts qua the business of the assessee, we do not find any merit in the additions made u/s. 40A(3) of the Act. We, accordingly, set aside the findings of the ld. CIT(A) and direct the AO to delete the impugned additions. - Decided in favour of assessee.
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