TaxTMI 
TaxTMI 
2015 (4) TMI 148
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....n the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals) erred in law in confirming the disallowance of Rs. 545000/- being payment actually made to the sub-contractors u/s.40(a)(ia) of the I.T. Act without discussing & ignoring the submissions urged. The disallowance may kindly be deleted." 4. So far as this grievance of the assessee is concerned, the relevant material facts are like this. The assessee is engaged in the business of civil construction. During the course of scrutiny assessment proceedings the A.O. noted that the assessee has made payments aggregating to Rs. 5,45,000/- to sub-contractors in respect of which no tax deductions have been made. It was on this undisputed fact the disallowance of R....
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....of Hon'ble Allahabad High Court's decision in the case of CIT vs. Vector Shipping Services Pvt. Ltd. (supra) and in the light of CBDT Circular No.10/DV/2013 dated 16.12.2013. We are thus urged to delete the impugned disallowance and hold that section 40(a)(ia) has no application on the facts of this case. Learned DR, on the other hand, relied upon the stand of the authorities below and submits that the issue regarding inapplicability of section 40(a)(ia) in respect of amounts paid during the year stands concluded against the assessee by Hon'b le Gujarat High Court's judgement in the case of CIT vs. Sikandar Khan N. Tunvar, 357 ITR 312 and CIT vs. Crescent Export Syndicate, 216 Taxman 258. We are thus urged to confirm the disallowance and th....
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....eld officers under section 119 of the I.T. Act, 1961 rather than on the basis of principles of law laid down by the Hon'ble Allahabad High Court. Quite to the contrary, articulating the views of the bench one of us (i.e. Accountant Member) at paragraph nos.37 & 38 has stated thus: "it could thus be, by this school of thought, wholly inappropriate to proceed on the basis of the ratio of Merilyn Shipping & Transport stands approved by the Hon'ble jurisdictional High Court particularly when that aspect of the matter was not even in challenge before Their Lordships. However, one of the demerits, if we can term it as a demerit, of this school of thought is that there is an inherent risk of being less than right in such a subjective decis....
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....awn inference from the judgement of Hon'ble Allahabad High Court. In all fairness to the assessee, there is indeed a judicial precedent, in the case of Infra Developers Vs ACIT and vice versa dated 19th October 2012, by Agra bench but that was the point of time when benefit of esteemed views of Hon'ble Gujarat High Court and Hon'ble Calcutta High Court was not available. Now that Hon'ble High Courts have opined in favour of the revenue, the assesse can not derive any advantage from the said decision from a lower tier of the judicial hierarchy. For these reasons, we are unable to see any merits in the arguments of the ld. Counsel for the assessee and accordingly we reject the same. The disallowance of Rs. 5,45,000/- stands confirmed. Ground ....
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....ing and stationery Rs. 10,377/- the A.O. disallowed Rs. 2,000/- on the ground that bills and vouchers included self-made vouchers and were not properly made out. 12. Aggrieved by the disallowances so made, the assessee carried the matter in appeal before the ld. CIT(A) but without any success. The assessee is aggrieved and is thus in further appeal before us. 13. We have heard the rival contentions and perused the material on record. Barring disallowance of Rs. 6,000/- out of diesel and petrol and depreciation of Rs. 40,700/- made out of office expenses, which are made on the ground that these expenses represents personal expenses of partners of the firm, all other disallowances are made purely on surmise and conjectures. The fact that th....