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2018 (2) TMI 1587 - ITAT VISAKHAPATNAMReopening of assessment - assessee has made the payment towards the conversion expenses but not deducted TDS as required u/s 194C - addition u/s 40(a)(ia) - payer has offered the amount for tax purpose - Held that:- In the assessee’s case the recipient has admitted the entire receipt as income and filed the return of Income. Following the decision of coordinate bench in the case of B. Dwarakanatha Reddy Vs. DCIT [2015 (10) TMI 2046 - ITAT HYDERABAD] we hold that provisions of section 40(a)(ia) are not applicable provided the payer has offered the amount for tax purpose and have paid or deemed to have paid the taxes on such income. Since the recipient has already has admitted the income and paid the taxes and the amount in question was reimbursement of expenses, we hold that the addition made by the A.O. u/s 40(a)(ia) of the Act is unsustainable and accordingly, we uphold the order of the Ld. CIT(A) and dismiss the revenue’s appeal.
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