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2018 (9) TMI 423 - AT - Income TaxUnexplained cash deposits - Held that:- AO has not accepted that the source of these cash deposits which are from the drawings of ₹ 3,00,000/-. CIT(A) was in agreement with the assessing officer that drawing of ₹ 3,00,000/- will be utilized by the assessee for his household expenditure. The assessee will not manage the household expenses for ₹ 40,000/- for one year and that the assessee has not furnished reconciliation statement showing deposits are from the drawings, the CIT(A) restricted the addition to ₹ 2,60,440/- and partly allowed the appeal of the assessee. A.R. reiterated the submission made before the CIT(A). He could not bring any cogent and relevant material on record to show that the deposits in the bank account were out of earlier drawings made by the assessee before depositing the same in the bank account. We, therefore, confirm the order of the CIT(A) and dismiss this ground of appeal of the assessee. TDS u/s 194C - incurred expenditure under the head “wages” - addition u/s 40(a)(ia) - Held that:- Copy of audited financial statement of M/s. Sumasanka Sponge Iron (P) Ltd., to show that no income accrued to that company out of payment of wages by the assessee through the said company. The assessee also filed before us a copy of the wage register of M/s. Sumasanka Sponge Iron (P) Ltd and and copy of ledger account of M/s. Sumasanka Sponge Iron (P) Ltd to show that the wages of labours were actually paid to the said company and no income of M/s. Sumasanka Sponge Iron (P) Ltd was involved in this transaction. Assessee is not liable to deduct ITDS on the amounts which are purely in the nature of reimbursement to the payee u/s.194C of the Act when the payment to the payee does not involve any taxable income of the payee. We, therefore, set aside the orders of lower authorities and restore the matter back to the file of the Assessing Officer for proper verification of the nature of payment made by the assessee to M/s. Sumasanka Sponge Iron (P) Ltd and re-adjudicate the issue afresh in accordance with law keeping in view the discussion made hereinabove. Business promotion expenses - Held that:- No supporting bills and vouchers were furnished by the assessee. Therefore, we confirm the orders of the lower authorities and dismiss this ground of appeal of the assessee.
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