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2016 (4) TMI 423 - AT - Income TaxAddition u/s 40A(2b) - cash discounts - TDS liability u/s 194H - Held that:- The amount that has been allowed by the assessee was in the nature of cash discounts and it was in line with the practice prevailing in trade and that A.O. has not made out any case of the cash discount paid to two parties to be excessive or unreasonable in terms of Section 40A(2b) of the Act, ld. CIT(A) has deleted the addition. We further find that ld. CIT(A) has given a finding that the nature of expenditure was in the nature of cash discount and not in the nature of commission on sales and therefore, assessee was not liable to deduct tax at source u/s. 194H of the Act. Before us, Revenue has not brought on record any material to controvert the aforesaid findings of ld. CIT(A). In view of the aforesaid facts, we find no reason to interfere with the order of ld CIT(A) - Decided against revenue Disallowance of overhead expenses - Held that:- While deleting the addition made by A.O., ld. CIT(A) has given finding that the expenses aggregating to ₹ 12,36,224/- were genuine, having incurred wholly and exclusively for the purpose of business and the genuineness of the expenses have not been doubted. He has also given a finding that the aggregate amount of ₹ 12,36,224/- had been paid full in subsequent previous year. Before us, Revenue has not brought on record any material to controvert the aforesaid findings of ld. CIT(A). In view of the aforesaid facts, we find no reason to interfere with the order of ld. CIT(A) - Decided against revenue Addition on account of household withdrawals - Held that:- While deleting the addition made by A.O., ld. CIT(A) has given finding that family members’ cash withdrawals of household expenses were to the tune of ₹ 8,74,006/- over and above other expenses which have been incurred by the assessee that assessee stayed in a joint family under one roof. He has further held that provisions of Section 69 of the Act cannot be invoked when addition is made on estimated basis. Before us, Revenue has not brought on record any material to controvert the aforesaid findings of ld. CIT(A) - Decided against revenue
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