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2016 (8) TMI 52 - ITAT KOLKATADelay in deposit of tds - Addition U/s 40(a)(ia) of payment made towards Labour Charges - Held that:- Amendment to the provisions of Sec.40(a)(ia) of the Act, by the Finance Act, 2010 is retrospective from 1.4.2005. Consequently, any payment of tax deducted at source during previous years relevant to and from AY 05-06 can be made to the Government on or before the due date for filing return of income u/s.139(1) of the Act. If payments are made as aforesaid, then no deduction u/s.40(a)(ia) of the Act can be made. Admittedly in the present case, the Assessee had deposited the tax deducted at source on or before the due date for filing return of income u/s.139(1) of the Act and therefore the impugned disallowance deserves to be deleted. - Decided in favour of assessee. Addition under the head ‘purchase discount’ - Held that:- An enquiry from the three parties ought to have been made by the AO to find out the truth of claim made by the assessee. The CIT-A also did not make such enquiries. We therefore, set aside the order of CIT-A on this issue and remanded the same to the AO to make enquiries from the aforesaid three parties and affording opportunities to the Assessee and decide the issue afresh Disallowance on motor car and telephone expenses and other expenses - Held that:- Taking into consideration the fact that there were some defects pointed out in the TAR [Tax Audit Report] and keeping in mind that there is always an element of estimation involved in making such disallowances, we are of the view that the disallowance should be sustained at 10% of expenses as against 20% disallowance made by the revenue authorities. Disallowance made u/s. 24 - Held that:- The disallowance cannot be sustained. It appears that the CIT-A has accepted the assessee’s contention, but due to typographical error, it has been mentioned that addition is sustained. The submission made by the assessee before the CIT-A clearly shows that the assessee will be entitled to claim deduction u/s. 24(b) of the Act on the ground even if the assessee is assumed to be a coowner, yet u/s. 26 of the Act the claim of assessee for deduction ought to have been allowed - Decided in favour of assessee.
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