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2017 (6) TMI 1187 - AT - Income TaxDisallowance of sub-contract expenses - whether action of disallowance of sub-contract expenses without bringing on record any cogent material by the lower authorities is bad in law and same deserves to be struck down? - Held that:- There is no dispute on the fact that the payments are made by the assessee to the sub-contractors after making TDS as per the provisions of section 194C of the Act. There is no evidence to demonstrate that the payments made to the sub-contractors are returned to the assessee in any form. In this regard, no incriminating material is brought to the records on this by the AO. All the 4 sub-contractors are assessed to tax and filed the returns of income in accordance with law. Nothing is brought on records to suggest that any disallowance is made in the hands of the sub-contractors and the assessments are complete wherein all sub-contracts are done as per the said contract agreements. Work contracts given to sub-contractors are complete in all respects and there is no compliant of any kind from the Municipal Corporations of Nashik and Tiruvananthaopuram. There is recording of statements u/s.131 of the Act by the AO and providing of cross examination of the parties involved. In all these proceedings, all the 4 sub-contractors confirmed rendering of services/execution of work contracts to the assessee and the same goes in faovur of the assessee's claim - Decided in favour of assessee
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