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2021 (1) TMI 778 - AT - Income TaxNon deduction of TDS on expenditure on account of “Advertisement & Publicity expenses” - HELD THAT:- As amount of ₹ 42,340/- consists of an amount of ₹ 17,340/- paid on account of advertisement and since the amount is less than ₹ 20,000/-, the provisions of Section 194C are not attracted. Further, out of ₹ 42,340/- an amount of ₹ 25,000/- has been paid on account of car expenses and Section 194C does not impose a liability on the payer to deduct TDS as there is no contract between the assessee and recipient. Hence, the disallowance made by the AO is hereby directed to be deleted. Addition made under the head “unverifiable sundry creditors” - HELD THAT:- Payment which is due to be paid to an entity namely, M/s Infotech Services is “no more a liability” owing to non-furnishing of details. We find from the record before us at page no. 102 of paper book, the confirmation and the copy of account filed by the assessee with regard to M/s Infotech Services. Since, it cannot be said that the liability has ceased, the addition made by the revenue is hereby deleted. Addition on account u/s 41(1) - HELD THAT:- We find from the record that these receipts are in the nature of security deposit and also have been paid subsequently to all the three parties mentioned above. Hence, considering the entire factum and since the payment have already been made, no addition u/s 41(1) is called for. Appeal of the assessee is allowed.
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