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2016 (7) TMI 106 - ITAT MUMBAIMethod of accounting - Disallowance u/s 40(a)(ia) - short accounting of receipts in the books of accounts vis-à-vis in the TDS certificates - rejection of books of accounts - Since the assessee working as sole selling agent make direct payment to principal which was received from various parties without reflecting in its books of accounts - assessee booked only its commission in its books of accounts - Held that:- Assessee was acting as sole selling agent of M/s S S Films and make payment to M/s S S Films after deducting various expenses which were of the nature of dubbing, mixing and recording etc. including the publicity and his commission. Since the assessee is working as sole selling agent of M/s S S Films the provisions of section 194J or 194C and 40(a)(ia) of the Act were not attracted and the observations of the AO that ₹ 60,33,735/- was paid without deduction of TDS and disallowed u/s 40(a)(ia) is wrong and against the provisions of law. Order of AO set aside and addition deleted - Decided in favour of assessee
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