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2014 (6) TMI 737 - AT - Income TaxDisallowance u/s 40(a)(ia) of the Act – Opportunity of being heard not provided - Held that:- CIT(A) deleted the disallowance as he found that the assessee deducted tax at source on Rs 4,44,285/- and not Rs 4,03,891/- for deleting the disallowance of Rs 40,394/-, new material was filed before the CIT(A) which was not filed before the AO and the CIT(A) admitted the same without allowing the AO any opportunity of hearing – thus, the order of the CIT(A) is set asdie with respect to the deletion of disallowance of Rs 40,394/- and the matter is remitted back to the AO for fresh adjudication – Decided in favour of Revenue. With respect to the deletion of Rs 71,797/- the CIT(A) observed that the payment was made in small amounts in respect of which the assessee was not liable to deduct tax at source u/s 194C of the Act – there was no material brought by the Revenue to show any error in the finding of the CIT(A) – thus, there was no reason to interfere in the order of the CIT(A) in respect of deletion of amount of Rs 5,67,078/- and Rs 71,797 – Decided partly in favour of Revenue. Disallowance out of carting and labour charges – Held that:- AO could not point out the amount of expenses for which vouchers could not be produced by the assessee or the amount of expenses in respect of which vouchers produced were defective and what was the nature of defect in the vouchers - no basis of making disallowance at the rate of 10% was stated in the order of assessment - the disallowance was made entirely on the basis of arbitrary estimate of the AO - in absence of any material brought on record to show that the estimate of disallowable expenditure made by the CIT(A) is not justified – there was no reason to interfere with the order of the CIT(A) – Decided against Revenue.
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