M/S CHADHA AUTO AGENCIES,HUBLI vs. ITO, HUBLI

ITA 711/BANG/2015Status: DisposedITAT Bangalore24 August 2015AY 2008-0911 pages
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What did the Tribunal hold?

The Tribunal held that the payment to Hero Honda Motors was a reimbursement of expenses where TDS was already deducted by the principal company, hence Section 194C was not applicable. However, additions for unrecorded income and excess partner credit were upheld due to lack of satisfactory explanation.

What were the facts?

The assessee debited Rs. 4,82,318/- for advertisement expenses paid to Hero Honda Motors Ltd. The AO disallowed this amount under Section 40(a)(ia) for non-deduction of TDS. Another addition was made for unrecorded income from HDFC Bank and excess credit in a partner's account.

What were the issues?

Whether the payment to the principal company for advertisement expenses attracts TDS provisions and whether unrecorded income and excess partner credits are taxable.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 194C,Section 194A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SINGLE MEMBER BENCH : BANGALORE

Before: SHRI D.MANMOHAN, VICE-

Per D.MANMOHAN, VP:

These two appeals are filed at the instance of the assessee- firm and they are directed against the orders passed by the CIT(A), Hubli. Since major issue is common in both the appeals, they are disposed of together for the sake of convenience.

2.

In respect of the assessment year 2008-09, the AO made an addition of Rs.4,82,318/- by applying the provisions of sec. 40(a)(ia) of the IT Act on the ground that the assessee incurred certain expenditure towards advertisement which attracts the provisions of ITA Nos.711 & 712/Bang/2015 M/s.Chadha Auto Agencies sec.194C of the Act. It is not in dispute that the assessee is a dealer in Hero Honda Mo

The order continues below.

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