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2024 (2) TMI 689 - ITAT DELHIProfit estimation - addition @ 12.5% of the turnover of the assessee by rejecting the books of accounts due to nonproduction of vouchers of expense - HELD THAT:- CIT(A) has only taken cue from the provisions of Section 44AD but not applied said section. CIT(A) estimated based on the entirety of the business. Having gone through the record, in the absence of any other details, we hold that the interest of justice would be well served by directing the revenue authorities to “estimate” profit @ 5%. The appeal of the assessee on this ground is partly allowed. Disallowance u/s 43B - PF & ESI payable - as submitted that the amount payable to PF & ESI does not belong to relevant year rather it belongs to earlier years - HELD THAT:- As we hold that the revenue authorities erred in making addition on account of PF & ESI because assessee did not claim this as a deduction in the year under consideration. Non-payment of TDS u/s 43B - As we hold that there is a separate section 40(ia) of Act which provides that if an assessee fail to deduct any tax at source or after deduction fails to deposit the said TDS to the Govt, account before due date of filing of return of income u/s 139(1) of the Act then the AO may made addition equivalent to 30% of the amount on which such tax deducted. Section 43B mainly covers expenses that are allowed to be claimed as deduction only in case of actual payment. TDS is not an expense but a tax which is deducted on the behalf of the deductee and deposited to the government's treasury. In the Instant case the Assessing Officer made addition u/s 43B of the Act which do not support the action of the Assessing Officer. Hence, the same is directed to be deleted.
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