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2014 (1) TMI 247 - AT - Income TaxDeletion of disallowance u/s 40(A)(2) of the Act - Payment of the bus rent – Held that:- The Assessing Officer had called upon the assessee to demonstrate that the payment made by the assessee to the specified persons is not unreasonable or excessive, and it is thus failure of the assessee which has resulted in disallowance under section 40A(2) – The onus is on the Assessing Officer and the AO has failed to discharge the onus – thus, the disallowance is unsustainable in law - As regards the discrepancy in the figures of the tax audit report and the assessee, neither such a situation can be a reason enough to make a disallowance under section 40A(2) nor the onus of explaining such a variation is on the assessee - A tax auditor is an independent professional and any errors in his report cannot be put to assessee's disadvantage – Decided against Revenue. Applicability of Section 40(a)(ia) of the Act – Taxes deposited before filing of return but beyond due date – Held that:- Following CIT v. Royal Builders [2014 (1) TMI 136 - GUJARAT HIGH COURT] - amendment carried out by Finance Act 2010 can be held to be retrospective from assessment year 2005-06 - TDS from the payments disallowed were made well before the date of filing of the income tax return – the order of disallowance set aside – Decided against Revenue.
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