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2018 (5) TMI 1377 - AT - Income TaxDisallowance of various expenses like, conveyance, travelling, foreign travelling, telephone and electricity etc. - Held that:- Disallowance has been made on ad-hoc basis without pointing out any defects in the books of accounts or vouchers maintained for these expenses, thus, addition to be deleted - Decided in favour of assessee. TDS u/s 194C/194I - non-reduction of TDS on monthly maintenance charges paid to housing societies - Held that:- For applicability of section 194C there should exist a contract between the parties for carrying out the ‘work’ as defined under that section. The Ld. CIT(A) has noted that the cooperative societies works on the principle of mutuality and on the principle of ‘no profit no loss’ and, therefore, reimbursement of the expenses by the members of the society, is in the nature of merely transfer of money from one hand to another and, thus, not falling under the payments mentioned in section 194C - Similarly, the CIT(A) has held for the purpose of section 194I that the payment in the hand of the recipient should be in the character of income, whereas in the instant case, it is merely reimbursement by the members to the society and, therefore, the payment in question is not liable for TDS.- Decided in favour of assessee Disallowance under section 14A - CIT-A restricted addition - Held that:- As in the instant case, the decision of the learned CIT(A) that dissatisfaction of the learned AO is not discernible, need a re-look and thus the issue needs to be reexamined by the learned CIT(A) and accordingly, we restore the issue to the file of the CIT(A) for deciding afresh in view of the decision in the case of India Bulls Financial Services Pvt. Ltd. (2016 (11) TMI 1369 - DELHI HIGH COURT). CIT(A) first may adjudicate the issue of requirement of satisfaction as to incorrectness of the claim of the assessee of having incurred no expenses towards exempt income. If he finds that the prerequisite of satisfaction is cleared, then he may decide qualification of disallowance under three parts of Rule 8D(2) in accordance with law.
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