Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 582 - AT - Income TaxDisallowance u/s 40A(3) - purchase which were above ₹ 20000/- - HELD THAT:- It is pertinent to note that the assessee made the purchase of Cement from M/s. Nirmal Cement Store, Ghaziabad during the year and bills were issued from time to time by M/s. Nirmal Cement Store, Ghaziabad in favour of M/s. Bhardwaj Construction Co. and only two payment were made as per details filed by the assessee before the Assessing Officer. The confirmation of M/s Nirmal Cement Store was also filed by the assessee during the assessment proceedings alongwith connected Bills. As per the contentions of the assessee did not make the payment in cash to M/s Nirmal Cement Store except two payments through cheques as mentioned. This fact was also admitted by putting the signature of Nirmala Aggarwal Prop. M/s Nirmal Cement Store in the ledger Account at the time of her confirmation. This factual aspect was never commented by the Assessing Officer as well as the CIT(A). Besides that the Assessing Officer as well as the CIT(A) did not take the proper cognizance of the evidences produced before the authorities. Therefore, it will be appropriate to remand back this issue to the file of the Assessing Officer. Addition of donation - HELD THAT:- AO as well as the CIT(A) has not taken the cognizance of the details relating to the donations and merely on the presumptions disallowed. Therefore, it will be appropriate to remand back this issue to the file of the Assessing Officer for further adjudication. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Hence Ground Nos. 5 and 6 are partly allowed for statistical purpose. Disallowance on account of 10% of conveyance expenses being of personal nature - HELD THAT:- It is pertinent to note that the assessee submitted the details of the traveling and conveyance expenses, but the same was not verified by the Assessing Officer. Therefore, it will be appropriate to remand back this issue to the file of the Assessing Officer. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Hence Ground Nos. 7 and 8 are partly allowed for statistical purpose. Disallowance on account of interest on TDS - HELD THAT:- It is pertinent to note that the assessee was under statutory obligation to deduct the income tax at the time of credit or/and payment to the payee. Therefore, the CIT(A) rightly sustain the disallowance on account of interest on TDS. Hence, Ground Nos. 9 and 10 are dismissed. Disallowance on account of depreciation on Cars - Allowable business expenditure - HELD THAT:- It is pertinent to note that the vehicles have been used for business purposes and are business assets of the assessee. Therefore, the CIT(A) was not right in sustaining the said disallowance
|