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2011 (12) TMI 348 - ITAT, AHMEDABADValidity of reopening - Disallowance under section 40(a)(ia) - Assessing Officer was of the view that the asses-see has not complied with the provisions of section 194C of the Act and the deduction of expenses to the extent of Rs.1,04,54,670 was not allowable under section 40(a)(ia) - The contention of the assessee was dismissed initially by the Assessing Officer on the ground .that for reopening of the assessment there is no need for gathering any new material and the case of the assessee has been reopened after re-examining, the records and on detection of the fact that excess deduction had been allowed to the assessee - the arguments were found to be convincing that before the amendment made by the Finance (No. 2) Act, 2004 which has specifically brought the amendment with effect from October 1, 2004 and before that the assessee had made the payments each below Rs.20,000 there was no violation of section 194C - Held that: Assessing Officer is not justified in holding the deduction of tax at source for the payments made of Rs.1,04,54,670 and further not justified in making the addition of the said amount - Decided in favor of the assessee
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