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2019 (11) TMI 89 - AT - Income TaxTDS u/s 194H - disallowance of salary expenditure by treating it as commission paid for selling goods - submission of the assessee rejected simply for the reason that the assessee had not maintained the salary register and appointment letters / agreements - HELD THAT:- It is pertinent to mention that in small business houses such record are not normally maintained and they are not mandatory. The assessee has also produced the vouchers with respect to the payment made to his employees but, they were also rejected by the Ld. Revenue Authorities without valid reasons. Revenue Authorities have also not brought out anything on record from the details produced by the assessee to establish that the payments made to the individuals exceeded taxable limits. Addition made on the basis of presumption is not justifiable. When the assessee had furnished the details of the payment to his employees it cannot be simply rejected without verifying the facts. Therefore, we hereby direct the AO to delete the addition made invoking the provisions of section 194H and 40(a)(ia) . TDS u/s 194J - addition u/s 40 - Disallowance of accounting charges - HELD THAT:- It is pertinent to mention that in small business houses such record are not normally maintained and they are not mandatory. The assessee has also produced the vouchers with respect to the payment made to his employee but, they were also rejected by the Ld. Revenue Authorities without valid reasons. Revenue Authorities have also not brought out anything on record from the details produced by the assessee to establish that the payments made to the individual exceeded taxable limits. Addition made on the basis of presumption is not justifiable. When the assessee had furnished the details of the payment to the Accountant towards accounting charges it cannot be simply rejected without verifying the facts. Direct the AO to delete the addition made invoking the provisions of section 194J and 40(a)(ia) of the Act. - Decided in favour of assessee.
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