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2018 (1) TMI 849 - AT - Income TaxAddition on account of sales promotion and advertisement expenses as unproved / bogus - Held that:- When the permanent account number as well as other particulars of the income tax assessment of the said party were placed on record before the A.O., he could have easily verified the claim of the assessee directly with the said party instead of harping on the failure of the assessee to give the correct address or produce the said party for verification. As regards the claim of the assessee for deduction paid to M/s. Latest Publicity House for supply of gift articles, it is not supported by any relevant documentary evidence such as bills, delivery challans, vouchers etc and in the absence of the same, the claim of the assessee for the said expenses cannot be allowed. - Decided partly in favour of assessee TDS u/s 194C - Disallowance u/s 40(a)(ia) - payment for performing accountancy job and computer consultancy - contract entered into by the assessee with the said persons - Held that:- As rightly held by the authorities below, when the amount in question was paid by the assessee to the concerned 3 persons at the fixed rate on monthly basis for the specified services rendered by them, there was bound to be an oral contract on the basis which the services were agreed to be rendered on retainership basis. The assessee, therefore, was liable to deduct tax at source in terms of section 194C and having failed to do so, the amount in question was liable to be disallowed under section 40(a)(ia). - Decided against assessee. Addition of installation and delivery expenses - CIT-A sustained 50% expenses - Held that:- Disallowance made by the A.O. for such expenses entirely was not justifiable keeping in view the nature of the assessee’s business of dealing in electronic goods which very much required incurring of expenditure on installation and delivery charges on regular basis - Disallowance made by the Ld. CIT(A) vide his impugned order is excessive and unreasonable and having regard to all the facts of the case including especially the nature of assessee’s business as well as the quantum of expenditure claimed, it would be fair and reasonable to make a disallowance of 50% out of installation and delivery charges to 25%.- Decided partly in favour of assessee Disallowance u/s 40A(3), car expenses and telephone expenses - Held that:- A perusal of the relevant portion of the order of authorities below also shows that a very fair and reasonable view has been taken by them while making this disallowances - Decided against assessee.
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