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2016 (8) TMI 1301 - AT - Income TaxDisallowance of the expenditure u/s 40(a)(ia) - payment already made by the end of the relevant financial year - Held that:- In view of the documents filed by the assessee before us to demonstrate that the payees have offered the said income to tax in their hands, we deem it fit and proper to set aside the orders of the authorities below and remand the issue to the file of the AO for reconsideration and verification of the details filed by the assessee. If the AO finds that the recipients have offered the said income to tax in the relevant A.Y, then no disallowance shall be made in the case of the assessee. Further, the decision of the Special Bench of the Tribunal in the case of Merilyn Shipping & Transport (2012 (4) TMI 290 - ITAT VISAKHAPATNAM ), which has been affirmed by the Hon'ble Allahabad High Court in the case of Vector Shipping Services (P) Ltd [2013 (7) TMI 622 - ALLAHABAD HIGH COURT] and also the order of the Hon'ble Apex Court dismissing the Revenue’s appeal against the same, we also hold that if the payments are already made by the end of the relevant financial year, no disallowance shall be made.
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