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2017 (5) TMI 790 - HC - Income TaxDemurrage and warfage - Held that:- ITAT correctly deleted the addition made by Assessing Officer holding that same was incurred by the assessee wholly or exclusively for the purpose of business. Shortage deduction - ITAT has deleted the addition holding that deduction is not covered under the penalty, but the expenses has been occurred during ordinary course of business. Addition of unloading charges - Held that:- ITAT has deleted the addition stating that vouchers are self-contained, whereby, the vehicle trips have been entered and no further discrepancy has been pointed out by the Assessing Officer. Addition on account of vehicle maintenance expenses - Held that:- ITAT has deleted the expenses holding that on perusal of copy of vehicle maintenance, ledger account filed in the paper book most of the expenses are on account of Tyres and Tubes of the Trucks and the assessee is involved in the business of material transportation services, therefore, expenses incurred on the vehicle kept for the business cannot be said to involve personal element. Addition of disallowances under section 40 (a) (ia) - TDS not deducted by the assessee under section 194 (I) - Held that:- ITAT has deleted the addition holding that in the present case how the provisions of Section 194 (I) of the Act has been made applicable since the trucks hired by the assessee is not anyone of the components as provided under section 194 (I) of the Act. Section 194 (I) of the Act provides for deduction of Tax at source in case of payment towards rent. The rent can be that of land, building, machinery, plant, equipments, furniture or fittings. In the present case, the provision of 194 (I) of the Act is not applicable in view of the fact that trucks hired by the assessee is not anyone of the component as provided under section 194 (I) of the Act. Therefore, it was further held that addition is not permissible as provision of Section 40 (a)(ia) of the Act cannot be invoked. The findings of ITAT is based on due appreciation of documents and material available on record which cannot be found fault with.
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