TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal upholds CIT(A)'s decision on income tax disallowance and accounting system differences (A)</h1> <h3>Asstt. Commissioner of Income Tax Circle-5, Firozabad Versus Avneesh Kumar Singh</h3> The Tribunal upheld the CIT(A)'s decision to delete the disallowance under section 40(ia) read with section 194C(2) of the Income-tax Act, 1961, amounting ... - Issues Involved:1. Disallowance u/s 40(ia) read with section 194C(2) of the Income-tax Act, 1961.2. Deletion of addition of Rs. 1,76,643/- due to accounting system differences.Summary:Issue 1: Disallowance u/s 40(ia) read with section 194C(2) of the Income-tax Act, 1961The Revenue appealed against the CIT(A)'s order deleting the disallowance made by the Assessing Officer (AO) u/s 40(ia) read with section 194C(2) amounting to Rs. 12,31,511/-. The AO noted discrepancies between the transport freight receipts shown by the assessee and the amounts credited by companies, leading to the disallowance. The assessee contended that it acted as an agent for vehicle owners, billing companies on their behalf and charging only commission, with TDS already deducted by the companies. The CIT(A) agreed, noting the assessee's role as an agent and the absence of claimed deductions under sections 30 to 38, thus ruling section 40(ia) inapplicable. The Tribunal upheld the CIT(A)'s decision, referencing similar cases like Mythri Transport Corporation vs. ACIT and Govind Singh, Mathura vs. ITO, Mathura, confirming that payments for hired vehicles did not constitute sub-contracts requiring TDS under section 194C(2).Issue 2: Deletion of addition of Rs. 1,76,643/- due to accounting system differencesThe CIT(A) deleted the addition of Rs. 1,76,643/- made by the AO, who noted differences due to the assessee following the Mercantile System while TDS certificates were issued on a payment basis. The CIT(A) found the difference reconciled and justified, a conclusion supported by the Tribunal, which found no contrary evidence from the Revenue.Conclusion:The Tribunal dismissed the Revenue's appeal, confirming the CIT(A)'s order on both issues, emphasizing the proper application of section 40(ia) and the reconciliation of accounting differences. The decision was pronounced in open court on 04.02.2011.
TaxTMI 
TaxTMI 
