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2010 (12) TMI 791 - AT - Income TaxDisallowance - Labour payments - Provisions of sec.40a(ia) - Since, the primary evidence in the form of wage registers which indicate payment of wages directly to the labourers by the appellant and which is further corroborated by the sworn statements of the five workers, Held that the labour payments were made directly to the labourers and the said payment was not contractual - Therefore, the provisions of sec.194C are not applicable to the facts of the appellant's case - Consequently, the provisions of sec.40a(ia) are not applicable in the instant case - Decided in favour of assessee. Payment through cross cheques - Provisions of section 40A(3)- Held that: before the A.O., assessee could not produce the certificate from the bankers - But when time was given to the assessee for producing the same during the remand proceedings or the appellant proceedings, assessee produced the certificates of bankers of a substantial amount - In the light of these facts, we are of the view that if assessee is allowed one more opportunity, he may produce some more evidence in support of his claim that the entire payment was made through account payee cheques - Accordingly, the order of the CIT(A) in this regard is set aside and the matter is restored to the file of the A.O. with the direction to re-adjudicate the issue in terms indicated above.
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