TaxTMI 
TaxTMI 
2016 (4) TMI 643
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.... claimed Expenses disallowed Vehicle running & Maintenance Exp. 2,97,714.00 29,771.00 Office & Staff welfare expenses 2,97,635.00 29,764.00 Site expenses 11,50,396.00 1,15,050.00 Total 17,45,745.00 1,74,575.00 1.1 That the ld CIT(A) has failed to appreciate the fact that the ld A.O. has made the disallowances by making general observations and no specific instance of non-verification is pointed, thus the disallowances so sustained deserves to be deleted more particularly when books of accounts were accepted. 2. On the facts and in the circumstances of the case the ld CIT(A) has grossly erred in confirming the disallowance of interest amounting Rs. 15,79,723/- U/s 40(a)(ia) without appreciating the submission/facts ....
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....ted by self made vouchers and were not fully verifiable. The running of vehicle expenditure is wholly and exclusively incurred for the business purposes. All the expenses were incurred for the business purposes. The ld CIT(A) also has not assigned any reason to restricting the expenses @ 10%. He further relied on the decisions of Hon'ble Supreme Court in the case of S.A. Builders Ltd. Vs CIT(A) 288 ITR 1 (SC) and Empire Jute Co. Ltd. Vs. CIT 124 ITR 1 (SC) and further argued that the Assessing Officer cannot put step in the shoes of the business man and direct to the assessee to how conduct the business. Therefore, he prayed to delete all the additions. 4. At the outset, the ld DR has vehemently supported the order of the ld CIT(A) and....
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....ce Ltd.- Loan against Dumper 1,00,314/- 8. Tata Capital Ltd.- Loan against Dumper 1,25,152/- 9. Tata Capital Ltd.- Loan against Dumper 2,88,867/- 10. Tata Capital Ltd.- Loan against Earth Compactor 85,001/- 11. TML Financial Services Ltd.- Loan against Hitachi 2,22,427/- Total Rs. 15,79,723/- The ld Assessing Officer gave reasonable opportunity of being heard. The assessee had not deducted TDS on it. There was a violation of Section 40(a)(ia) of the Act on payment of Rs. 15,79,723/-. The Assessing Officer provided opportunity on it, the assessee submitted that Section 40(a)(ia) applied only when the amount is payable and no where expenditure is paid for which he relied Hon'ble ITAT, Jaipur Bench decision in t....
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....ur Vidhyut Vitran Nigam Ltd, several decisions have come. ITAT Special bench decision in the case of Merlyn shipping held that disallowance under section 40 (a)(ia) is applicable only if amount is payable at the year end. However operation of this decision is stayed by AP High Court. Subsequently decisions of Calcutta and Gujarat High Court in the cases of Crescent export syndicate and Sikandarkhan N Tunvar (both decided in May 2013) respectively decided the issue categorically against the appellant by holding that disallowance of the section 40(a)(ia) is applicable in respect of non-deduction or delayed payment of TDS for both amounts paid as well as payable. Therefore position is quite clear now and accordingly the disallowance of interes....