GRAPHIC AIDS,KOLKATA vs. A.C.I.T CIR - 29,KOLKATA, KOLKATA

The first issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in disallowing computer maintenance charges of Rs.28,090/- for non-deduction of TDS u/s. 194J of the Act by invoking the provisions of section 40(a)(ia) of the Act.

I have heard rival submissions and gone through facts and circumstances of the case. I find from the facts of the case that the assessee has carried out routine maintenance of computer hardware and peripherals etc. which does not involve any specialized technical expertise. Hence, the payment cannot be termed as falling u/s. 194J of the Act being payment for technical services. These are merely routine maintenance of computer hardware and peripherals and accordingly, the provisions of section 194J will not apply and, therefore, disallowance u/s. 40(a)(ia) of the Act cannot be made. Accordingly, I delete the addition and allow this issue of assessee’s appeal.

The next issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in restricting the disallowance at Rs.33,638/- as against the disallowance made by AO at Rs.1,20,6165/-.

I have heard rival submissions and gone through facts and circumstances of the case. I find that the AO required the details of delivery charges expenses of Rs.6,03,082/- incurred by the assessee. The assessee produced vouchers which were self made internal debit vouchers and AO was not satisfied about the genuineness of these expenses and accordingly, he treated 20%