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2016 (2) TMI 1154 - ITAT, PUNEAddition on account of estimation of gross profit - Held that:- We fail to comprehend the action of the Revenue in benchmarking higher G.P. of one centre and in consequence extrapolate the same to another centre. No tangible material has been brought on record by the Revenue to enable it to displace the actual G.P. declared by the assessee. It is well-settled that the assessee is not obliged to maximize its it profits. In the light of the aforesaid discussion, we find considerable merit in the plea of the assessee that such addition based on assumptions and presumptions are totally uncalled for and deserves to be deleted. In the result, the Grounds taken by the assessee. Disallowance invoking section 40(a)(ia) - Held that:- We find that the Co-ordinate Bench of the Tribunal on the identical point has decided the issue in favour of the assessee in the case of M/s S. & S. Wire Products vs. ITO [2016 (1) TMI 1347 - ITAT PUNE] held that Second proviso to section 40(a)(ia) is clarificatory and therefore retrospective in operation and as a consequence, once the payee has discharged in tax obligation in accordance with law, operation of section 40(a)(ia) stands dispensed with. The Assessing Officer is directed to adjudicate the issue in accordance with law after affording reasonable opportunity of hearing to the assessee. Thus, on this Ground assessee succeeds for statistical purposes.
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