[aaykarbhavan] Only deductible expenditure could be subjected to sec. 40(a)(ia) disallowance for TDS default, says ITAT

Only deductible expenditure could be subjected to sec. 40(a)(ia) disallowance for TDS default, says ITAT

August 29, 2014[2014] 48 taxmann.com 19 (Delhi - Trib.)

IT : In order to fall within ambit of section 40(a)(ia), it is sine qua non that assessee should have been otherwise eligible for deduction of sum which is sought to be disallowed by invoking provisions of section 40

IT : Where assessee, a custom clearing agent, received certain amount from its clients as reimbursement of expenses which did not contain any profit element, Assessing Officer was not justified in applying gross profit rate at 8 per cent on estimate basis on amount so reimbursed in order to make addition to assessee's taxable income

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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