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2018 (1) TMI 1291 - AT - Income TaxDisallowance made u/s 40a(ia) - short deduction of tax at source - CIT-A restricted the addition - Held that:- It is not in dispute that the sum of ₹ 11,86,890/- represents amounts of expenditures for which short deduction of tax at source has been made by the assessee. It is well settled by the Hon’ble Jurisdictional High Court in the case of CIT vs. S.K. Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT] wherein it has been held that disallowance u/s 40a(ia) of the Act cannot be invoked in respect of short deduction of tax at source. Hence, respectfully following the said decision we hold that no disallowance u/s 40a(ia) could not be made Disallowance of bad debts - Held that:- We find lot of force in the argument of the Ld. AR that these balances were reflected under the head sundry debtors in the balance sheet of the assessee and from the very fact that the same are shown under sundry debtors itself goes to prove that they had emanated out of sales of the assessee and hence, the income relatable thereon in the form of sales and services had been duly offered to tax in the earlier years in accordance with Section 36(2) of the Act. Respectfully following the decision of the Hon’ble Supreme Court in the case of TRF Limited (2010 (2) TMI 211 - SUPREME COURT) and in view of the fact that the assessee had duly written off this trade debts by crediting the concerned sundry debtors accounts in its books of accounts, we direct the Ld. AO to delete the disallowance made towards bad debts. Addition made on account of sundry creditors - Held that:- This is a case wherein the other party M/s Anvil Cables Pvt. Ltd. having made sales to the assessee and having sent all the requisite documents through bank pursuant to L/C limits, had not recorded the sales in its books of accounts. Instead of passing on of this information to the Ld. AO of the supplier M/s Anvil Cables Pvt. Ltd for necessary action to be taken in accordance to law in the hands of the said supplier, the Ld.AO of the assessee had accepted the statement of account of that supplier as sacrosanct and proceeded to make addition in the hands of the assessee by disbelieving the reconciliation statement and explanation given by the assessee. Hence, in these circumstances, we have no hesitation in directing the Ld. AO to delete the addition made on account of sundry creditors. Non-granting of rebate of tax paid u/s 90/91 - Held that:- CIT(A) had not adjudicated this ground at all in his order even though, this ground is also reproduced in his order. Hence, we deem it fit and appropriate to remand this issue to the file of the Ld. Ld. CIT(A) for adjudication of the same on merits and based on the evidences filed by the assessee and dispose off this ground in accordance with law. Accordingly, ground raised by the assessee is allowed for statistical purposes.
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