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2016 (4) TMI 1198 - AT - Income TaxDisallowance u/s 40(a)(ia) - payment on which TDS has been made and paid into Government Account before the due date for furnishing the return of income - Held that:- There is no denying that the tax was deposited by the assessee in the month of April, 2007. It is also an admitted fact that the Hon’ble Jurisdictional High Court in the case of Checkmate Services P. Ltd. [2014 (11) TMI 641 - GUJARAT HIGH COURT ] has held that the amendments to Section 40(a)(ia) allowing deduction for the payment, on which TDS has been made and paid into Government Account before the due date for furnishing the return of income is to take effect retrospectively. - Decided in favour of assessee Estimation of profits @ 8% - Held that:- Since the audited books of accounts with supporting evidences were produced before the ld. CIT(A), the First Appellate Authority should have examined the books of accounts as his powers are co-terminus to that of the A.O. We find that the First Appellate Authority has not verified the details himself and again depended upon the A.O. We further find that in the immediately preceding assessment year on a turnover of ₹ 1.49 crores, the assessee has shown net profit @ 2.49%, whereas for the year under consideration on a turnover of ₹ 2.49 crores, the assessee has shown net profit @ 2.02%. On an increase of the turnover by ₹ 1 crore, there is marginal fall in the net profit rate which is 0.47%. We, therefore, do not find any justification in estimating the net profit at 8%. We, therefore, set aside the findings of the ld. CIT(A) and direct the A.O to accept the net profit shown by the assessee - Decided in favour of assessee
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