TaxTMI 
TaxTMI 
2018 (11) TMI 474
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....arh and during the year assessee was engaged in the business of running a retail Fuel Outlet (Petrol Pump) of Hindustan Petroleum Corporation Ltd.(HPCL). During the year, assessee had declared total turnover of Rs. 30.74 crores as compared to immediate previous year's turnover of Rs. 26.15 crores. There is an increase in GP ratio from 2.64% to 2.47%. The return of income was filed declaring income from business and profession amounting to Rs. 10,58,975/- and income from house property were declared in a sum of Rs. 1,87,110/-. Since, there were no declined in the gross profit ratio, therefore, it was accepted by the AO. The AO further noted that assessee had debited Rs. 6,54,094/- on account of renovation expenses in the books of account. De....
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....enses are not in doubt. In this view of the matter, I hold that the entire expenses were incurred on account of Revenue expenditure. Therefore, disallowance of 1/3rd of the expenses is wholly unjustified. I, accordingly, set aside the orders of the authorities below and delete the addition of Rs. 1,96,228/-. 6. Ground no. 1 of appeal of assessee is allowed. 7. On ground no. 2, assessee challenged the disallowance of Rs. 39,850/- u/s 40(a)(ia) of the Act. 8. At the time of verification of ledger of M/s Mahalaxmi Petroleum submitted during the course of assessment proceedings, it was found that assessee has paid cash amounting to Rs. 39,850/- for advertisement expenses (Rs. 19,925/- on 26.09.2013 and Rs. 19,925/- on 29.09.2013 to M/s CBH I....
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.... the person responsible for paying such sum referred to in sub-section (1) shall be liable to deduct Income tax under this section". The above provision clearly shows that no deduction is required under the above provision, if the amount paid to the account of the contractor does not exceed Rs. 30,000/-. The proviso to this section provides that where the aggregate of the amounts paid exceeds Rs. 75,000/-, such person shall be responsible to deduct TDS. In the present case, the assessee has not paid more than Rs. 30,000/- on one occasion because payment below Rs. 30,000/- each was paid on different occasions. The aggregate of the amount also does not exceeds in a year at Rs. 75,000/-. Therefore, assessee is not liable to deduct TDS u/s 194C....