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2011 (6) TMI 454 - ITAT, MUMBAIRevision of orders prejudicial to Revenue – non-deduction of TDS - Motor Fleet Hire Charges – dis-allowance of expenses @10% but while computing 1% is disallowed - Held that:- The main ground on which the CIT exercised jurisdiction u/s 263, was the failure on the part of the Assessing Officer to make inquiries with regard to the applicability of the provisions of section 194C to the payments made by the assessee to other truck owners in the course of his business of transportation of cargo and the consequent dis-allowance that could be made under the provisions of section 40(a)(ia) of the Act. In said order, the applicability of the provision has been considered, and no opinion is expressed. Thus the assessee is at liberty to raise all the plea that he has sought to put forth in the proceedings pursuant to the order u/s 263. Similarly the dis-allowance of expenses whether they are to be 1% or 10% is also a matter which requires examination by the Assessing Officer. Therefore, the order passed under section 263 of the Act is proper and has to be upheld. Appeal of the assessee is dismissed.
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