TaxTMI 
TaxTMI 
2024 (12) TMI 987
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.... the cash expenses. 2. The Ld CIT (A) erred in law and in facts of the case in upholding the AO's action of disallowing and making addition to total income, the sum of Rs 8,10,150/- u/s 40(a)(ia) of the IT Act after holding that TDS has not been made although the fact remains that TDS was duly made on the payments made as hire charges of the generator and on its attendant, and there is no provision to make TDS on the purchase of fuel/diesel purchased. 3. The Ld CIT (A) erred in law and in facts of the case upholding the AO's order of making an addition of Rs 97,250/- u/s 40(a)(ia) of the IT Act on the ground that no TDS has been made on such payment made to Annu Pathak on account of professional charges, despite the fact that the appellant has very much made the TDS, first by debiting the party's account and crediting the TDS payable a/c, and thereafter by debiting the TDS payable a/c once it is paid to the treasury of Government; and thus there is no violation of sec 40(a)(ia) of the IT Act. 4. The Ld CIT (A) erred in law and in facts of the case in confirming the AO's order of adding an amount of Rs 5,84,000/- u/s 40 (a)(ia) of the IT Act despite the fact th....
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....the assessee has made payment to various parties of more than INR 20,000, which is in violation of the provisions of section 40A(3) of the Act. Accordingly, the AO disallowed the amount of INR 32,28,387 under section 40A(3) of the Act and added the same to the assessee. 5. The learned CIT(A), vide impugned order, dismissed the ground raised by the assessee on this issue and held that the assessee has not proved that no payment has been made in contravention of the provisions of section 40A(3) of the Act especially when a huge amount of INR 32,28,387 has been incurred by the assessee through cashiers as no record of having incurred these petty expenses has been reproduced. Being aggrieved, the assessee is in appeal before us. 6. We have considered the submissions of both sides and perused the material available on record. In the present case, there is no dispute regarding the business profile of the assessee that it is engaged in the business of producing television serials for various television channels. Since in the cash book of the assessee, certain payments were found to have been made in excess of INR 20,000 to a person in a day, the AO disallowed the entire expenditure of I....
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....ne and verify all the ledger accounts in respect of these expenditures. Thus, we deem it appropriate to restore this issue to the file of the AO for de novo adjudication after due examination/verification of the details submitted by the assessee. The assessee is directed to furnish all the details in support of its plea and also furnish the details as may be called for by the AO without any default. Needless to mention, no order shall be passed without affording reasonable opportunity of hearing to the assessee. With the above directions, the impugned order on this issue is set aside and grounds no.1 raised in assessee's appeal is allowed for statistical purposes. 7. The issue arising in ground No. 2, raised in assessee's appeal, pertains to the disallowance made under section 40(a)(ia) on account of non-deduction of tax under section 194C of the Act on payment made for generator/hire and fuel charges. 8. The brief facts of the case pertaining to this issue, as emanating from the record, are: During the assessment proceedings, upon perusal of the ledger of expenses debited to the profit and loss account of the assessee, it was observed that the assessee has not deducted TDS in re....
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.... deduction of TDS. Further, the assessee has also placed on record the invoices raised by J.K. Films Power, forming part of the paper book from pages 298-321, in respect of generator and attendant hire charges, which separately mention the quantity of fuel consumed and the amount charged for the fuel. Thus, it has been submitted that on hiring charges TDS has been deducted as per the applicable provisions, however, on fuel charges no TDS has been deducted as the payment was simply in the nature of reimbursement of the cost of fuel incurred by J.K. Films Power on behalf of the assessee while providing the same along with the generator. From the perusal of the aforesaid invoices, we also find that in certain invoices no fuel charges were charged by J.K. Films Power. As per the assessee, when the generator is on standby then no fuel charges are paid by the assessee and the same is based on fuel consumed and the rate of diesel on that day. Thus, it is the plea of the assessee that the payment made in respect of fuel charges is in the nature of reimbursement of expenditure on fuel incurred by J.K. Films Power. 11. Having considered the submissions and perused the matter available on re....
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....see submitted that the TDS was duly deducted while crediting the professional fees to the accounts of the party. The AO, vide assessment order, disagreed with the submissions of the assessee and held that ongoing through the ledger account of professional fees in the case of Ms. Annu Pathak, it is seen that an amount of INR 97,250 where the assessee has not deducted TDS under section 194J of the Act. On the basis that the assessee has failed to deduct TDS, the AO disallowed the entire sum of INR 97,250 under section 40(a)(ia) of the Act and added the same to the total income of the assessee. The learned CIT(A), vide impugned order, dismissed the ground raised by the assessee on this issue and upheld the disallowance made under section 40(a)(ia) of the Act. Being aggrieved, the assessee is in appeal before us. 14. We have considered the submissions of both sides and perused the material available on record. During the year under consideration, the assessee availed professional services of Ms. Annu Pathak, who was the production manager. As per the assessee, at the time of booking of the invoice, the professional fees account was debited and party's account was credited. Further, TD....
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....was readily available in the studio and was used by them for some of the serials. It was further submitted that the asset was purchased and the ownership was acquired and therefore there was no question of deduction of TDS on the payment made. The assessee submitted that M/s Kathasis Studio Private Limited neither carried out any work nor provided any services to the assessee company. The AO, vide impugned order, disagreed with the submissions of the assessee and held that the assessee is not in the business of purchasing of set and selling it. It was further held that the studios are in the business of renting ready-made sets with little modification. Since the assessee did not deduct TDS under section 194J, the entire sum of INR 5,84,000 paid by the assessee was disallowed under section 40(a)(ia) of the Act and added to the total income of the assessee. The learned CIT(A), vide impugned order, dismissed the ground raised by the assessee on this issue and upheld the disallowance made under section 40(a)(ia) of the Act. 18. We have considered the submissions of both sides and perused the material available on record. As per the assessee, it hires the studio as and when required an....