Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 672 - AT - Income TaxDisallowance u/s 40(a)(ia) - as per the submissions furnished by the assessee it is clear that the appellant has not deducted tax at source even though the payments made to the sub-contractor were in excess of ₹ 50,000/-, thereby attracting provisions u/s 40(a)(ia) - HELD THAT:- As per CIT-A AO should have taken recourse of the provisions u/s 40(a)(ia) on the amount where no TDS was made. It was held that during the appellate proceeding this issue was discussed with assessee, who was in agreement that sec. 40(a)(ia) is overriding provision and the payment made to sub-contractors attracts this provisions of the Act and that he that the assessee had not deducted tax at source for the payment made to the subcontractors. The expenditure claimed by the assessee towards the payment made to the sub-contractors to the extent of the amount where tax was not deducted at source is confirmed. CIT(A) directed the AO to work out the actual amount to be disallowed by invoking sec. 40(a)(ia) of the Act and partly allowed the appeal of the assessee - CIT(A) has passed the order after considering the overall facts of the case in granting partial relief to the assessee, which we affirm. No contrary facts were brought to our notice to take other view. In the result the ground No 1 of the appeal is dismissed. Estimation of income on bogus purchases - CIT-A Confirmed addition to the extent of 3% - HELD THAT:- AO failed to appreciate that no sale is possible in absence of purchases. The AO made additions of the entire purchases, without appreciating the facts that the assessee has shown sales, which is not disputed by the AO. The ld CIT(A) restricted the addition to the extent of 3% by following the decision in case of Atul Kumar ( assessee in connected appeal), wherein the ld. CIT(A) relied on the order of Anil Amritlal Chahawala. In our view the disallowances restricted by ld CIT(A) is sufficient to prevent the possibility of the revenue leakage, which we affirms.- Decided against revenue.
|