TMI Blog2016 (8) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... , Ward II (1) , Salem [2015 (10) TMI 1415 - ITAT CHENNAI ] wherein held if the impugned amount is not outstanding at the end of the close of the assessment year in respect of the expenses either as outstanding expenses or as sundry creditors, this amount cannot be disallowed. In view of this we are inclined to remit the issue to the file of AO to examine whether the impugned amount is outstanding at the end of the close of the assessment years under consideration and decide in the light of above order of the Tribunal. - Decided in favour of assessee for statistical purposes. - I.T.A. No. 219/Mds./16 - - - Dated:- 30-6-2016 - Shri Chandra Poojari, Accountant Member And Shri G.Pavan Kumar, Judicial Member Appellant by : Shri R.Pad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the expenditures for not producing the supporting bills/vouchers determining the total income at ₹ 19,11,545/-. 4. Aggrieved by the order of AO, once again, the assessee went on appeal before the Ld.CIT(A). On appeal the Ld.CIT(A) observed in respect of disallowance u/s.40(a)(ia) of the Act that during the course of second innings of first appellate proceedings, the books of accounts were produced by ld.A.R. On verifying the books of accounts, it was found that although they were named as Labour Charges, the same were in fact paid to 11 Agencies towards the embroidery works. Those Agencies in turn incurred expenditure on various workers who did the embroidery work. However, that does not alter the nature of the payments made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat High Court in the case of CIT v. Vector Shipping Services (P.) Ltd. in I. T. A. Nos. 122 of 2013 dated July 9, 2013 [2013] 357 ITR 642 (All) held that section 40(a)(ia) is not applicable when there is no outstanding balance at the end of the close of the year relevant to the assessment year in respect of these payments. However, the assessee has not brought on record, the details of outstanding expenses or schedule of sundry creditors showing whether the impugned amount is outstanding at the end of the close of the previous year relevant to the assessment year either in the name of the party or outstanding expenses. Hence, in the interest of justice, we are remitting the issue back to the file of the Assessing Officer with direction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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