TaxTMI 
TaxTMI 
2019 (12) TMI 493
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.... 10,68,968/- being the amount of reimbursement of interst u/s. 40A(ia) of the Act; 2. Rs. 7,94,786/- on account of wagers paid u/s. 40a(ia) of the act; 3. Rs. 80,000/- being the amount of remuneration paid by invoking provision of section 40(A)(2) of the Act; 4. Rs. 26,000/- by applying provision of section 40A(3) of the Act; 5. Rs. 19,424/- and Rs. 33,947/- under the heads 'vehicle running expenses' and 'telephone expenses' respectively on estimate basis treating the same as personal in nature. All the above actions being arbitrary, erroneous and unjust must be quashed with directions for appropriate relief. 2. Assessee has also filed an Application for admission of additional gro....
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....tted and decided accordingly. In support of other grounds, he filed the written synopsis, which read as under- "This appeal is directed against the order of the Id. CIT (Appeals)-XXII, New Delhi, in Appeal No. 228/2009-10 dated 27.02.2014. 2.1 The grounds taken in appeal are five in number as under: "On the facts and in the circumstances of the case and in law the authorities below erred in making the following additions to the returned income:- I. Rs. 10,68,968/- being the amount of reimbursement of interest u/s 40a(ia) of the Act; 2. Rs. 7,94,786/- on account of wages paid u/s 40a(ia) of the Act; 3. Rs. 80,000/- being the amount of remuneration paid by invoking provision of Section 40 ....
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....ave been extracted in detail by the Ld. CIT (Appeals) in his order at para 6 on page Nos. 3 & 4. According to the Assessing Officer admittedly the assessee-Appellant had not deducted any tax at source. As per the provisions of Section 194A of the Act the assessee was required to deduct TDS on amount exceeding Rs. 5,OOO/- at the specified rates. In the instant case, however, the assessee failed to deduct TDS. Since it was credited to a resident on which tax had not been deducted consequently the same not be deducted in computing total income chargeable under the head 'Profit and gains from business and profession'. So the interest charges of Rs. 10,68,968/- were disallowed u/s 40a(ia) by adding it back to the assessee's income. T....
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....) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income; and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:] 3.3 Appellant seeks leave to submit a copy of the acknowledgement of the Income Tax Return as filed by for the year UITCDPL. In terms of the proviso, therefore, Appellant deserves relief but connected after verification of the connected tects. Pleaded accordingly. 4.1 Ground No. 2 is against the confirmation of the disallowances of wages in a sum of Rs. 7,94,786/- al....
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....independent employee with no connection or association with any organization which was in the business of providing services. There was no contract as envisaged u/s 194C of the Act with anyone. The Assessing Officer has not brought any evidence on record to establish the existence of any contract, valid or otherwise, between the Appellant and these casual workers. Each pqyment has to be considered separately for TDS in terms of Section 194A of the Act. Each one of these payments made to casual workers was less than the maximum amount not exigible to tax during this year. There was therefore, no liability to deduct tax at source even under section 194A of the Act. Consequently section 40a(ia) of the Act had no application to the facts of the....
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....o be allowed in view of the excellent performance of the Appellant during the year where the sales of vehicles doubled .as compared to the preceding year. 6.1 Ground Nos. 4 & 5 are in respect of nominal disallowances concerning disallowance u/s 40 (A) (2) of the Act and personal use for vehicles and phones. It is submitted that the expenses as incurred are all genuine and being so in terms of the decision of the Hon'ble Punjab & Haryana High Court in the case of Gurudas Kamat no disallowance of Section 40A(2) varity was warranted. As to personal expenses the Ld. CIT(A) had arbitrarily confirmed 20% disallowance which was highly excessive. Pleaded accordingly." 4. Ld. DR relied upon the orders of the authorities belo....