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2014 (7) TMI 1066 - AT - Income TaxCryptic order passed by CIT(A) - Interest expenses disallowed u/s 40(a)(ia) – Failure to deduct TDS u/s 194I - Business of software and hardware development projects from USA - CIT(A) has not considered the three ingredients of section 68 of the Act, i.e. creditworthiness, identity and genuineness of the transaction - CT(A) has also not discussed how he has satisfied regarding the genuineness and source of the share application money in investing in the assessee company - the CIT(A) has passed a cryptic order without discussing the issue in detail – Relying upon CIT vs. Kanpur Coal Syndicate [1964 (4) TMI 18 - SUPREME Court] - the power of the CIT(A) is co-terminus with that of the AO - the FAA can do what the AO can do and direct him to do what he has failed to do - it was the duty of the CIT(A) to verify the source of investment of share application money - Since CIT(A) has failed to do the above exercise, the order of the CIT(A) is set aside and the matter remande for fresh adjudication – Decided in favour of assessee.
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