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of <h1>Appeal partly allowed for statistical review, with specific reassessment directions on financial charges & expenses.</h1> <h3>Pradeep Chandra Jha M/s. Phil Systems Versus DCIT, Circle 1 (1), Bilaspur</h3> The appeal was partly allowed for statistical purposes, with specific directions given for reassessment on the disallowance of financial charges for ... TDS u/s 194A - Addition u/s.40(a)(ia) - assessee not deducted TDS in respect of payment to NBFCs - HELD THAT:- Contention of ld A.R. that the assessee is having certificate of C.A. issued in respect of TDS and demonstrated before us in paper book at page 1 to 4 explaining Form No.27A issued by the C.A. On this issue, ld D.R. submitted that this information was not available with the Assessing Officer. Considering the overall aspect of the fact that NBCSs have offered its income, the matter has to be verified by the Assessing officer. Accordingly, we remit this issue to the Assessing Officer to verify the claim of the assessee and pass order as per law. Disallowance on truck running and transportation expenses - HELD THAT:- As assessee is maintaining books of account and having vouchers. Assessing Officer has not specified any particular voucher which is not verifiable and making adhoc disallowance. The Assessing Officer has not specified that the bills are not genuine. Assessing officer has not doubted the genuineness of the said vouchers but made the adhoc disallowance. Looking into the facts and circumstances of the case, we remit this issue to the file of the Assessing officer. The assessee is directed to submit all the details and the Assessing officer is directed to pass the order. Adhoc disallowance which is 1/6th out of conveyance expenses, car expenses, office expenses and telephone expenses the findings of the CIT(A) is in order. Hence, we confirm the same Issues:1. Disallowance of financial charges for non-deduction of tax under section 40(a)(ia)2. Disallowance of truck running and transportation expenses3. Adhoc disallowance of expensesAnalysis:1. The appeal was against the CIT(A)'s order for the assessment year 2010-2011. The assessee contested the disallowance of Rs.21,86,031 under section 40(a)(ia) for not deducting tax from financial charges paid to certain entities. The appellant argued that the CIT(A) erred in not considering the retrospective effect of the proviso inserted by the Finance Act 2012. The tribunal remitted this issue to the Assessing Officer for verification based on the CA certificate provided by the assessee.2. Regarding the disallowance of truck running and transportation expenses, the Assessing Officer had made an adhoc disallowance of Rs.8,00,000 due to missing vouchers and poor record management. The appellant contended that they maintained proper accounts and had genuine vouchers. The tribunal directed the Assessing Officer to review the issue with detailed submissions from the assessee.3. The adhoc disallowance of Rs.1,39,904 out of various expenses was also challenged. The tribunal upheld the CIT(A)'s decision on this issue, confirming the disallowance. The appeal was partly allowed for statistical purposes, with specific directions given for reassessment on the first two issues and confirmation of the third issue.
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