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2010 (11) TMI 485 - AT - Income TaxAddition - Bogus liability - Time barred - explanation of the assessee was not accepted by the AO and the impugned amount [Rs.40,47,655 and Rs.19,82,697/-= Rs.60,30,352/-] was added by him as per provision of section 40a(ia) of the Act - During the course of assessment proceedings the assessee submitted the complete. details of purchases along with the names and addresses of the parties - Law is settled that the fate of the assessee cannot be decided by the revenue on the basis of surmise, suspicion, or probabilities - The agreement for purchase of goods from the parties was actually mode through agents who were required to make payments by cash only - since the actual payment of processing and labour charges was made as evidenced by the documents on records, provisions of section 40(a)(ia) are not applicable in the case of the appellant - As in the present case the expenditure has not been held to be bogus, section 40(a)(ia) was not applicable. Also when the expenditure is allowable, if TDS is deducted in subsequent years, there cannot be any question of deducting TDS from the payments made in the year under consideration - Decided against the assessee
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