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2015 (1) TMI 1233 - ITAT CHENNAITDS u/s 194C - non deduction of tds deleted by AO - Revision u/s 263 - Held that:- CIT has only examined the agreement which have been already considered by the Ld. Assessing Officer. Though he has made several observations, there were no other findings other than, nondeduction of tax at source and applicability of Section 40(a)(ia) of the Act. The Ld. A.R. during the course of proceedings before the Ld.CIT had submitted the letters from the recipients of the payments from the assessee company wherein they have stated that they had declared the amount received from the assessee as their income and paid the tax duly. The amended second proviso to Section 40(a)(ia) of the Act was also referred. The Tribunal in the case of Rajeev Kumar Agarwal Vs. Additional Commissioner of Income Tax [2014 (6) TMI 79 - ITAT AGRA ] has held that “the insertion of second proviso to Section 40(a)(ia) is declaratory and curative in nature and it has retrospective effect from 1st April, 2005, being the date from which sub clause (ia) of section 40(a) was inserted by the Finance (No.2) Act, 2004.” In such circumstances, it cannot be construed that the Ld. Assessing Officer had passed the order without application of mind. He has considered all these facts and had consciously decided the matter. From the above facts, it appears that the Ld.CIT has passed the order U/s.263 based on difference of opinion and by reviewing the issue which was already decided by the Ld. Assessing Officer. Moreover, it is pertinent to mention at this juncture that the decision rendered in the case of Merilyn Shipping and Transports Vs. Additional CIT in [2012 (4) TMI 290 - ITAT VISAKHAPATNAM ] is also in favour of the case of the assessee.
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