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2022 (5) TMI 32 - ITAT DELHIDisallowance on account of outstanding TDS payable - only reason of the impugned disallowance is that the assessee had not paid it before the end of the financial year - HELD THAT:- We find that identical issue arose for consideration before the Tribunal in the case of M/s. Gagrat & Co [2020 (2) TMI 457 - ITAT DELHI] when the assessee has duly deposited the TDS before filing the return of income for the year under assessment, the same is allowable u/s. 43B of the Act. No doubt, the assessee is following the cash method of accounting and has made cash payment to various parties after deducting TDS, the portion of which has been allowed by the AO as deductible expenditures, U/s 198 of the Act tax deducted at source by the assessee as per Income Tax Act is deemed to be income received by the recipient of the said income and as such TDS deducted by the assessee is deemed to have been received by the recipient of the income and as such it cannot be held that the assessee has not paid the amount of tax deductible at source on or before the due date. So it cannot be held that the aforesaid amount of TDS has not been paid by the assessee while following the cash system of accounting - thus we delete the impugned disallowance and direct the Ld. AO to modify the assessment order accordingly. Disallowance out of expenses - AO made adhoc disallowance of 10% for personal use and for unverifiable bills/vouchers - HELD THAT:- We are of the view that adhoc disallowance out of expenses claimed by the assessee without bringing on record any adverse material deserves to be deleted being purely on conjecture and surmises alone - As relying on Thakur Vaidyanath Aiyar & Co. [2021 (8) TMI 817 - ITAT DELHI] we delete the impugned disallowance and direct the Ld. AO to modify the assessment order accordingly. Assessee appeal allowed.
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