9911796707
TMI Blog2014 (8) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the assessee's appeal, deleted the aforementioned disallowances. 2.2. Being aggrieved with the order of ld. CIT(A), the department is in appeal before us and has taken following grounds of appeal: "1. Whether the ld. CIT(A) was justified in ignoring the Income Tax Provision that TDS u/s 194C is liable even on a single payment above Rs. 20,000 as one of the single payment involved in this case was of Rs. 34,495/-. 2. Whether the ld. CIT(A) was correct in holding that norms overrule Income Tax Act Provision on the issue of non deduction of tax on payment of Rs. 1,37,794/- made by the assessee firm to Kokad Chambers of Commerce, Mumbai for office space. 3. Whether the ld. CIT(A) was correct in treating as expenditure of Rs. 6,26,400/- on account of replacement of asset i.e. supply, erection, testing and commissioning of 'main panel' AC supply, as revenue in nature. 4. Whether the ld. CIT(A) was correct in ignoring the clear narration on bills of expenditure and holding expenditure of Rs. 83,131, Rs. 73,967, Rs. 2600 & Rs. 2,28,306/- as incurred for professional activities as against person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Kakad Chamber of Commerce, Mumbai in violation of section 194C and therefore he disallowed Rs. 1,39,794/- observing as under: "The following payments have been made by the assessee as per ledger account under the head 'Repair & maintenance':- Sr. No. Payment made to Party Date of payment (Rs.) Expenses TDS 1 Kakad Chamber of Commerce, Mumbai 01-05-2007 30219 194C 2 Kakad Chamber of Commerce, Mumbai 01-08-2007 30219 194C 3 Kakad Chamber of Commerce, Mumbai 01-11-2007 39678 194C 4 194C -01-2008 39678 194C Total 1,39,794 4.1. Before ld. CIT(A) the assessee pointed out that no show cause notice was issued by assessing officer and no reasonable opportunity was given to prove that the expenses were in the nature of reimbursement of expenses. Ld. CIT(A) deleted the disallowance observing as under: "I have carefully considered the findings of the Assessing officer and written submissions of the appellant. In fact M/s Kakad Chamber & Business Premises Co-op Society Ltd. is a registered society under Maharashtra Society Act. The appellant is a member of this Society. It pays the maintenanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and made a disallowance of Rs. 6,26,400/-. 5.1. Before ld. CIT(A) it was pointed out that an amount of Rs. 14,338/- had been deducted u/s 194C of the I.T. Act on the total payment of Rs. 6,96,000/- @ 2.06%. It was further pointed out that before assessing officer the assessee had placed on record form no. 16A to prove that the TDS was deducted against this expenditure. Therefore, assessing officer erred in disallowing the impugned amount u/s 40(a)(ia). It was further submitted that assessing officer contradicted his own stand by taking this expenditure both as revenue expenditure as well as capital expenditure at the same time because he had disallowed the expenditure u/s 40(a)(ia), treating the same as revenue expenditure and also allowed depreciation treating the same as capital expenditure. No show cause notice was, however, issued by assessing officer in course of hearing. The assessee pointed out that main panel for supply, erection, testing and commissioning of TPN cubicle type main panel for 415V 3-phases 4 wire 50 HZ AC supply with all cables was only a replacement of the existing main panel because of natural wear and tear. The assessee submitted that the place B4/158 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from the copy of I.T. return filed by the assessee. Under these circumstances, we do not find any reason to interfere with the order of ld. CIT(A). Ground is dismissed. 6. Brief facts, apropos ground no. 4 are that assessing officer noted that two bills of M/s Level one of Rs. 60,681/- and Rs. 22,450/- related to electrical installation. He noted that the narration in the bill was as under: "Bill for electrical installation work at Mr. V. Shridharan's residence at B-6/13, Safdarjang Enclave, New Delhi." 6.1. The assessing officer pointed out that the office is at basement and rest above is residence portion. Therefore, he disallowed the sum of Rs. 83,131/- treating the same as personal expenditure. The assessing officer further noted that following bills related to the residential premises of family members: (i) Bill dated 24-3-2008 from M/s K.L. Sharma & Sons, C-4/130, SDA, New Delhi for Rs. 73,967/- for paint etc. work: - The assessing officer noted that there was cutting on the narration "in the bedroom of ? Shrid". He disallowed the expenditure treating the same as personal expenditure. (ii) Bill dated 11-3-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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