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2015 (12) TMI 452 - ITAT KOLKATA

2015 (12) TMI 452 - ITAT KOLKATA - TMI - TDS u/s. 194C - Disallowance u/s 40(a)(ia) - repairs and maintenance - CIT(A) deleted disallowance - Held that:- We find that a sum pertains to purchase of electrical items for which obviously no deduction of tax at source is warranted and hence no disallowance u/s 40(a)(ia) of the Act could be invoked on the same. Hence we are not inclined to interfere with the findings of the Learned CITA in this regard - Decided in favour of assessee.

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assessee had given the names and addresses of the parties from whom loans were received by him together with the confirmations and PAN details of those parties. However, we find that the Learned AO had doubted the creditworthiness of the parties who had advanced monies to the assessee. We find that the entire loans have been received only by account payee cheques which fact is not disputed by the revenue. We find that the assessee had filed confirmations from all the five parties. However, in re .....

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side this issue to the file of the Learned AO and verify the veracity of the confirmations filed by the assessee from the five parties and decide this issue afresh uninfluenced by earlier decision after giving adequate opportunity of being heard to the assessee. The assesee is given liberty to adduce fresh evidences and documents to support his contentions. - Decided in favour of assessee for statistical purposes.

Addition under the head ‘Business Promotion Expenses’ - CIT(A) deleted .....

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cumstances, we hold that the order of the Learned CITA in this regard does not require any interference - Decided in favour of assessee. - I.T.A No. 375/Kol/2012 - Dated:- 12-10-2015 - Shri Mahavir Singh,Judicial Member, and Shri M. Balaganesh, Accountant Member For The Appellant : Shri Sanjay Mukherjee, JCIT/ld.DR For The Respondent : Shri M.S Murthy, FCA, ld.AR ORDER SHRI M.BALAGANESH, AM This appeal of the revenue arises out of the order of the Learned CITA in Appeal No. 280/CIT(A)-XIV/Kol/09 .....

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d maintenance could be made in the facts and circumstances of the case. 3.1. The brief facts of this issue is that the assessee claimed a deduction towards repairs and maintenance charges of ₹ 2,69,714/- paid to M/s A.B. Enterprises . The same was disallowed by the Learned AO u/s 40(a)(ia) for non-deduction of tax at source on the pretext that the same is debited under the head repairs and maintenance and accordingly it is liable for deduction of tax at source ignoring the submissions of t .....

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u/s. 194C read with 40(a)9ia) under the head Repair and Maintenance charges on the plea that the said payment pertains to purchase of materials on which TDS provisions are not applicable, whereas the facts show that the payment made by the assessee under the said head, clearly attracted the provisions of sec. 194C. 3.2. The Learned DR vehemently supported the order of the Learned AO. In response to this, the Learned AR argued that a clear finding has been given by the Learned CITA in para 5.2 of .....

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terfere with the findings of the Learned CITA in this regard. Accordingly, the ground no. 1 raised by the revenue is dismissed. 4. The second issue to be decided in this appeal is that whether the disallowance u/s 40(a)(ia) of the Act amounting to ₹ 7,39,000/- towards printing charges could be made in the facts and circumstances of the case. 4.1. The brief facts of this issue is that the assessee claimed a deduction towards printing charges amounting to ₹ 14,53,092/- paid to M/s Calc .....

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and granted relief to that extent as the same would not be liable for deduction of tax at source. Aggrieved, the revenue is in appeal before us on the following ground:- 2. That the ld. CIT(A) erred in law as well as on facts in deleting the disallowing of ₹ 7,39,000/- made by the AO u/s. 194C read with 40(a)(ia) under the head Printing charges paid on the ground that the said payment pertains to purchase of materials on which TDS provisions are not applicable, whereas, the facts show that .....

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by the revenue before us . We find that a sum of ₹ 7,39,000/- pertains to purchase of diaries for business directory for which obviously no deduction of tax at source is warranted and hence no disallowance u/s 40(a)(ia) of the Act could be invoked on the same. Hence we are not inclined to interfere with the findings of the Learned CITA in this regard. Accordingly, the ground no. 2 raised by the revenue is dismissed. 5. The third issue to be decided in this appeal is whether in the facts an .....

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0,000/- 22-12-2009 Ms. Nitasha Shah 5,00,000/- 22-12-2009 M/s. Nevada Udyog 11,75,000/- 22-12.2009 The assessee pleaded that all these loans were received by it by way of account payee cheques from the aforesaid parties . The assessee produced the names and addresses from whom the loans were received by it during the assessment year before the Learned AO. The Learned AO noticed that the confirmations were filed for first two parties which was defective as one party had not even signed the confir .....

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accordingly added the same u/s 68 of the Act. On first appeal, the assessee produced all the loan confirmations before the Learned CITA who also sought clarifications from the Learned AO with regard to confirmations received from M/s M.S.Graphics Pvt Ltd and Sri Biswanath Mukherjee and also held that in respect of all the parties , the assesee had duly filed the names, address, confirmations, PAN details and information that the monies received by account payee cheques. Accordingly the Learned .....

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the said loan confirmation did not establish the impugned loan conclusively . 5.2. The Learned DR vehemently supported the order of the Learned AO. In response to this, the Learned AR argued that the assessee had fully discharged its onus in terms of section 68 of the Act by proving the identity of the parties , genuinity of the transactions and creditworthiness of the parties. He further stated that the Learned AO had agreed for the first two ingredients but had only doubted the creditworthines .....

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Learned AO had doubted the creditworthiness of the parties who had advanced monies to the assessee. We find that the entire loans have been received only by account payee cheques which fact is not disputed by the revenue. We find that the assessee had filed confirmations from all the five parties. However, in respect of confirmation from last three parties namely Babcock Engineering Services, Ms. Nitasha Shah and Nevada Udyog, the same were filed before the Learned AO after the completion of ass .....

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decision after giving adequate opportunity of being heard to the assessee. The assesee is given liberty to adduce fresh evidences and documents to support his contentions. Accordingly, the ground no. 3 raised by the revenue is allowed for statistical purposes. 6. The last issue to be decided in this appeal is as to whether addition of ₹ 12,44,819/- could be made under the head Business Promotion Expenses in the facts and circumstances of the case. 6.1. The brief facts of this issue is tha .....

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