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2014 (1) TMI 1406 - HC - Income TaxDisallowance u/s 40A(3) - Payment of expenditure in cash - ITAT deleted the addition on the ground that Prima facie adjustment u/s 143(1)(a) can not be made - Held that:- Decision in S.R.F. Charitable Trust v. Union of India and others [1991 (10) TMI 38 - DELHI High Court] followed - The assessing officer cannot unilaterally disallow the claim made by the assessee unless and until he calls upon the assessee to prove the claim made by him. Only after giving such opportunity, from the material placed on record, the assessing officer can disallow the claim as required under Section 40A(3) read with Rule 6DD of the Act - Before arriving at a conclusion that 20% of 29 lakhs and odd has to be disallowed in terms of Section 40A(3) of the Act, the assessing officer ought to have called for further details from the assessee in order to understand whether such claim could be made under Rule 6DD by the assessee - The issue has been restored for fresh adjudication. - Decided in favor of revenue.
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