The AO was not justified in making a disallowance on the hire charge expenses under s 40(a)(ia) in spite of the non-filing of Form No 15-J, as required under third proviso to cl (i) of sub-s (3) of s 194C, since the assessee-transporter has received Form 15-I from the vehicle owners for the non-deduction of tax, as held by KolTrib in ITO v Rajesh Kr Garg — In favour of: The assessee.
Disallowance under s 40A(3) — Payment to agent — No disallowance under s 40A(3) can be made if all cash payments in a day during one occasion did not exceed the prescribed limit of Rs 20,000 during AY 2006–2007.
Decided on: 5 August 2011.
No comments:
Post a Comment