9911796707
TMI Blog2013 (11) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... case in passing an appellate order u/s. 250 of the I.T. Act for Asst. Year 2006-07 on 08.04.2010. (2) The learned CIT(A) has erred in confirming the disallowance of Rs.81,757/- u/s.40(a)(ia) of the Act. (3) The learned CIT(A) has erred in confirming the disallowance of brokerage Expenditure provided at Rs. 2,75,000/-." 2. The first ground is general and has not been pressed by the appellant. The same is dismissed. 3. The second ground of appeal is against the disallowance of Rs. 81,757/- u/s. 40(a)(ia) of the Act. The A.O. observed that the assessee has debited interest at Rs. 18,79,305.78/- in p&l account. On verification of details filed with the submission the assessee had not filed Form No.15-H, as required in case of i) Bhanumati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat High Court held that this infraction in such requirement would not make the requirement of deduction at source applicable under sub Section 2 of Section 194C of the IT Act. Thus, he requested to delete the addition. At the outset, ld. Sr. D.R. relied upon the order of the CIT (A). 6. We have heard the rival contentions and perused the material on record. The assessee had submitted the photo copy of Form No. 15H before the A.O. on 28.11.2008 not in the CIT office in the prescribed time limited. The Hon'ble Gujarat High Court in case of CIT vs. Valibhai Khanbhai Mankad (supra), on TDS deductable u/s. 194C and Form No. 15I was to be submitted within prescribed time before the CIT office as under: & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Hon'ble Gujarat High Court in case of CIT vs. Valibhai Khanbhai Mankad (supra), the proposition propounded by the Hon'ble Gujarat High Court in case of TDS u/s. 194C(3) and Form No. 15I not submitted before the Commissioner in prescribed time in prescribed form is applicable on lapse made by the deductor u/s.194A read with 197A of the IT Act. Thus, we allow the assessee's appeal. 7. The third ground of appeal is against confirming the disallowance of expenditure of Rs. 2,75,000/-. The A.O. found that assessee had shown provision for brokerage at Rs. 2,75,000/-. No satisfactory explanation was given by the assessee before the A.O. Thus, he made addition of Rs.2,75,000/-. Ld. CIT(A) confirmed the addition by observing that whole of br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emi wholesale basis. This is a very competitive business in Metro Cities. On consistent basis business is carried out through trade brokers only to whom brokerage is paid. Thus, expenditure towards brokerage inevitable in nature of activity carried out by the appellant. The total sales during the year was Rs. 6.58 crore on which brokerage of Rs.8,17,071/- was claimed @ 1.24%, which was lesser compared to previous year. The TDS has been deducted on payment of brokerage. All trades of recipients with full address and PAN had been given to the A.O. during the assessment proceeding vide letter dated 2nd September, 19/24/28.11.2008 and he prayed to delete the addition. At the outset, ld. Sr. D.R. vehemently relied upon the order of the CIT(A). ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
