No disallowance merely on non-disclosure of mode of payment of salary to security guards

Neetu Juneja Vs ITO (ITAT Delhi) Conclusion:  Merely because assessee had not disclosed mode of payment of salary i.e. either by cheque or cash, the same should not doubted especially when such salary to security guards came to Rs.27,000/- per month for four persons. Even, if the payment was made in cash, there would be no violation of section 40A(3). Held: AO disallowed an amount of the salary paid to the security guards on the ground that such payments had been made to the contractor without deducting tax under section 194-C. It was held that assessee in the instant case was a small assesse...