TaxTMI 
TaxTMI 
2011 (6) TMI 907
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....firmed by Ld.CIT(A). 4. The assessee has shown receipts of ₹ 3,75,265/- from Tanker running and claimed expenses of ₹ 4,60,481/- and thus claimed loss of ₹ 85,217/-. A.O. asked the assessee to produce vouchers but vouchers were not produced except few bills of diseal. The A.O. rejected the loss and made addition of ₹ 1,50,000/- under the head tanker running. 5. Before the Ld.CIT(A), the assessee submitted as under :- "The A.O. has disallowed ₹ 1,50,000/- out of expenses of ₹ 4,60,481/- shown by the assessee regarding tanker. The disallowance has been without any basis. The appellant has produced the vouchers for measure expenses regarding diesel and particulars regarding wages paid to driver and khala....
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....In the absence of vouchers. AO has rightly estimated income from tanker running business at ₹ 1,50,000/-. The addition is confirmed. Ground No.2 of the appeal is thus dismissed." 7. We have heard both the parties. Details of tanker running expenses are available at page 7 of the paper book of the assessee. The a/c is as under :- Diseal 2,98,921 TDS 8422 Wages 92,400 Hire charges 2,66,843 Tyres 25,100 Loss 85,217/- Repairing 19,888 Insurance 14,457 Tax 8,550 Measurement Calculation 1,165 4,60,481 4,60,421 8. Diseal expenses are more than Hire charges and onus was on assessee to explain as to how diseal expenses are more than hire charges. The A.O. has estimated the income at ₹ 1,50,000/-. We feel tha....
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.... receiving the same in the office and further that the declaration should have been filed with the Commissioner of Income Tax. Regarding the first objection humble appellant submits that in normal practice the person receiving the dak only places the seal of the office which contain the date and no signatures are made. The acknowledgement have been obtailned in due course and should not have been doubted. Copies of few acknowledgement even of appeals are submitted herewith from which the contention of appellant is fully proved. Another reason which has been mentioned by A.O. is that copy of declaration has not been submitted with the Commissioner of Income Tax. It is, submitted that for non compliance of the provisions of Section 197A(2) t....
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....s confirmed. 13. We have heard both the parties. Section 194A requires the assessee to deduct tax at source from interest paid or credited. TDS in respect of interest is not to be made in view of section 197A(1A) in case the person to whom interest is being paid or credited furnishes a declaration to the person responsible for paying or crediting the tax. Failure to furnish forms to the authorities may be a default but for that default 40(a)(ia) can not invoked. Hence the addition of ₹ 1,23,370/- is deleted as the assessee has complied with section 197(1A). 14. With section 197(1A) the sixth ground of appeal is that Ld.CIT(A) has confirmed the disallowance of interest of ₹ 1,34,165/- u/s 24(b) of I.T.Act. 15. The A.O. observe....
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....on of interest paid on money borrowed." 17. The Ld.CIT(A) confirmed the action of A.O. after observing as under :- "Argument of the appellant is without any force. In the valuation report it is clearly mentioned that first floor and second floor are unfinished. Moreover as mentioned by AO in the assessment order, Ration Card and Telephone bill are also in the name of previous owner and not the appellant. The valuation report mentions that the house is self occupied by owner. It merely indicates that the house is not occupied by a tenant. The appellant failed to bring any material on record to prove that he occupied the house during the year. AO is therefore justified in making disallowance of ₹ 1,34,165/- claimed by appellant u/s 2....