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2016 (3) TMI 1062 - AT - Income TaxDisallowance u/s 40(a)(ia) - addition on account of interest paid to various loan depositors without deduction of tax at source - Deemed date of payment of tax by the resident payee - Held that:- Restore this issue to the file of the Assessing officer with the direction that the assessee shall provide all the details to the Assessing Officer with regard to the recipients of the income and taxes paid by them. The Assessing Office r shall carry out necessary verification in respect of the payments and taxes of such income and also filing the return by the recipient. In case, the Assessing Officer finds that the recipient has duly paid the taxes on the income, the addition made by the Assessing Officer shall stand deleted - Decided in favour of assessee by way of remand. Addition on remuneration paid to partners of the assessee firm in excess of the limits prescribed u/s 40(b) - Held that:- From the said Explanation 3, it is apparent that the book profit has to be the profit as has been shown in the profit & loss account for the relevant previous year. The profit received by the assessee on the sale of goddown amounting to ₹ 10,20,430/- was duly credited in the profit & loss account as prepared by the assessee and is part of the net profit as has been shown in the profit & loss account. In view of this fact, it is of the view that both the authorities below did not appreciate the provision of section 40(b)(v), Explanation 3 and misinterpreted definition of the book profit as given under Explanation 3 to section 40(b) of the Act. Accordingly set aside the order of the CIT (A) and delete the disallowance made by the AO - Decided in favour of assessee Addition on account of amount paid for the purchase of computer - entitlment for deduction u/s 37 - Held that:- As noted that even though the assessee claims the payment for such purchase of the computer has been made through cheque to the supplier of the computer but he could not adduce any evidence, confirmation of the party as well as copy of the invoice even though the sufficient opportunity was given to the assessee. No doubt, the assessee is entitled for deduction u/s 37 of any expenditure which has been incurred by the assessee for the purpose of the business but, in my opinion, the assessee is bound to prove the genuineness of the expenditure. It is a case where the assessee has not discharge his onus proving the genuineness of the expenditure. Accordingly confirm the disallowance of ₹ 15,650/-. - Decided against assessee
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