IN THE ITAT MUMBAI BENCH ‘D’
Deora Trading Co. V/s. ITO
IT Appeal No. 3487 (Mum.) of 2009
[Assessment year 2005-06]
Date of pronouncement -June 8, 2012
ORDER
Amit Shukla, Judicial Member
The present appeal has been filed by the assessee against the order dated 13-2-2009, passed by the CIT(A)-XX, Mumbai for the quantum of assessment passed under Section 143(3) for the assessment year 2005-2006 on the following grounds of appeal :-
“1. On the facts and in the circumstances of the appellant’s case and in law, the learned Assessing Officer erred in disallowing expenses aggregating a sum of Rs. 64,52,061/-by invoking provisions of Section 40(a)(ia) of the Income Tax Act, 1961, subsequently in appeal to CIT(A) the expense was partly allowed up to the extent of Rs. 1,35,494/-.
2. On the facts and in the circumstances of the appellant’s case and in law, the learned Assessing Officer erred in disallowing expenses aggregating a sum of Rs. 1,88,152/-by invoking provisions of Section 40A(2)(b) of the Income Tax Act, 1961, subsequently in appeal to CIT(A) the expense was partly allowed upto the extent of Rs. 68,152/-.
3. On the facts and in the circumstances of the appellant’s case and in law, the learned Assessing Officer erred in disallowing expenses aggregating a sum of Rs. 3,60,000/-by invoking provisions of Section 68 of the Income Tax Act, 1961, subsequently in appeal to CIT(A) the ground was allowed”
2. The relevant facts for adjudication of ground No.1 are that the assessee is a partnership firm, engaged in the business of wholesale trading of cloths and manufacturing. During the course of the assessment proceedings, while examining the expenses relating to processing charges, packing charges and service charges, the Assessing Officer noted that the assessee has not deducted the TDS on the payments made to the parties rendering such work. The assessee was thus required to furnish complete details of TDS deducted and paid itemwise for the payment made above Rs. 50,000/- in respect of following payments which were made during the year :-
