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2015 (6) TMI 350 - ITAT DELHI

2015 (6) TMI 350 - ITAT DELHI - TMI - TDS u/s 194C - non deduction of TDS on payments made against printing and processing work - CIT(A) deleted the addition - Held that:- The assessee has filed copies of bills pertaining to M/s Print-O-Pack Ltd. The same were on account of purchases of magazines and promotional forms. The CIT(A) has recorded that these bills show that the assessee has purchased magazines and promotional forms and the cost of magazine etc. includes cost of paper, printing and bi .....

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omotional forms and therefore, there was no question of deducting TDS - Decided in favour of assesse.

Disallowance u/s 40(a)(ia) - non deduction of TDS on payments made against packing and forwarding charges - CIT(A) deleted the addition while accepting additional evidences - Held that:- The assessee has filed copies of bills and confirmations of parties before the CIT(A). The CIT(A) has given a finding that on going through these bills, it was seen that the assessee has purchased pol .....

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chase of packing and forwarding material, the provision of Section 194C was inapplicable and therefore, no disallowance under Section 40(a)(ia) of the Act could be made - Decided in favour of assesse.

Disallowance of unverified bad debts - Held that:- A perusal of the details written off as filed in the compilation before us shows that it consists of various debtor parties whose amount due was ranging from ₹ 513/- to ₹ 5,80,601/-. Allowing the small amounts due from variou .....

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and the balance addition is deleted - Decided partly in favour of revenue.

Addition u/s 2(22)(e) on account of deemed dividend - CIT(A) deleted the addition - Held that:- provision of Section 2(22)(e) was not applicable in the case of the assessee as it is well settled that deemed dividend can be assessed only in the hands of a person who is a shareholder of the lender company and not in the hands of a person other than a shareholder. The issue is covered in favour of the assessee by .....

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t, 2012. 2. Ground No.1 of the Revenue's appeal is as under:- "On the facts and in the circumstances of the case and law, the ld.CIT(A) has erred in deleting the addition of ₹ 48,57,508/- made u/s 40(a)(ia) of the Act on account of non deduction of TDS on payments made against printing and processing work." 3. Learned DR submitted that the CIT(A) has not called for any remand report in this case and therefore, the order of the CIT(A) is not sustainable. She submitted that inf .....

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re of purchases. She referred to paragraph 3 of the assessment order in support of the case of the Revenue. She relied on the order of the Assessing Officer. 4. Learned counsel for the assessee submitted that it was a clear case of transaction of purchase of books and not job work and therefore, the provisions of Section 40(a)(ia) do not apply to the facts of the case of the assessee. He submitted that no remand report was necessary in this case as suggested by the learned DR. He relied on the o .....

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romotional forms and the cost of magazine etc. includes cost of paper, printing and binding. He has further recorded that the assessee has also filed confirmation from M/s Print-O-Pack Ltd. vide letter dated 28th November, 2011 wherein it is mentioned that the bills were raised for magazines and brochures which include the cost of paper, printing and binding. The CIT(A) has given a finding that the confirmation from M/s Print-O-Pack Ltd. proves that the payments were made not for the job work or .....

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/- made u/s 40(a)(ia) of the Act on account of non deduction of TDS on payments made against packing and forwarding charges while accepting additional evidences." 7. Learned DR submitted that the CIT(A) has accepted the additional evidence in contravention of the relevant rules. She submitted that the assessee has not furnished any copy of bill from the parties to substantiate its claim of deduction and also no address or permanent account number was given of these parties so as to enable t .....

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red to produce the bills before him and therefore, the same could not be produced before the Assessing Officer. However, it was a clear transaction of purchases and therefore, the provision of Section 40(a)(ia) of the Act is not applicable to the case of the assessee. He referred to the relevant portion of the appellate order passed by the CIT(A) in support of the case of the assessee. 9. We have considered the rival submissions and perused the order of the Assessing Officer and the CIT(A). We f .....

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of packing and forwarding material and not the payment for packing and forwarding as observed by the Assessing Officer and therefore, are not covered under the provisions of Section 194C of the Act. In these facts of the case, we are of the view that since the payments were made for purchase of packing and forwarding material, the provision of Section 194C was inapplicable and therefore, no disallowance under Section 40(a)(ia) of the Act could be made. Accordingly, the order of CIT(A) on this i .....

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nts and the additional evidence was accepted by the CIT(A). 12. Learned counsel for the assessee submitted that there was no correspondence with the debtor parties and no record of address of debtor parties was available with the assessee. However, as per the details of the bad debts, the amounts due from various parties were very small and therefore, it was not advisable to initiate legal proceedings against the said parties. He relied on the order of the CIT(A). 13. We have considered the riva .....

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ous parties and written off by the assessee, the balance amounts exceeding ₹ 20,000/- are addable due to no evidence whatsoever produced by the assessee to show that these were genuine items of bad debts written off by the assessee, the details whereof are as under:- Sl.No. Name of Party Amount 1. Vijayalaxmi Publishers (Chennai) 24,358.00 2. The Corner Book Store (Delhi) 47,838.00 3. Security Deposits 27,749.00 4. Popular Book Distributors (Trivendrum) 71,694.00 5. Pen Books Pvt.Ltd. (Alu .....

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