9911796707
TMI Blog2011 (6) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... This appeal preferred by the Revenue is directed against the order passed by the CIT(A) -IV, Hyderabad dated 29.10.2010 and pertains to the assessment year 2005-06. 2. The revenue raised the following grounds in its appeal: 1. The CIT(A) erred in law and allow the assessee's appeal. 2. The CIT(A) ought to have upheld the penalty levied by the Assessing Officer as the assessee had understa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 194 J : Rs.3,03,050 Amount pertaining to section 194 I : Rs.68,22,868 3.1. Further, it was noticed that the assessee had added back the amounts pertaining to section 194C and 194J totalling Rs. 4,92,430/- in the computation of income. However, the Assessing Officer noted that the amount pertaining to section 194I included payments of Rs. 11,14,253/- pertaining to payments made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received such cargo on 'to pay' basis and had paid the amount on behalf of the exporters the amount payable as on 31.3.2005 to M/s Shiv Shakti Lorry Transport was debited to various clients accounts'. It was pleaded that the assessee was under an impression that TDS was not applicable on 'to pay basis'. However, in view of the CBDT's Circular No.715 dated 8.8.1995 in F.No.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of expenditure u/s 40(a) (ia) of the Income Tax Act. Non deduction of TDS by the assessee was resulted in disallowance of expenditure u/s 40(a) (ia), that itself cannot be construed as furnishing inaccurate particulars of income or concealment of income. The assessee has failed to deduct TDS which resulted in disallowance of expenditure. In our opinion, the mistake committed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not justified merely because the assessee has claimed certain expenditure that expenditure is not eligible in view of the provisions of section 40(a)(ia) of the Act and for that reason, expenditure is disallowed. Penalty cannot be levied for mere making of a claim of the expenditure which is not sustainable and deletion of penalty by the CIT(A) is justified. We place reliance on the judgement of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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