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2015 (1) TMI 733 - ITAT AHMEDABADDisallowance of expenses u/s 40(a)(ia) - TDS u/s 194C from the advances made - labour/transport/professional charges - CIT(A) deleted the addition - Held that:- While deleting the addition of ₹ 2,40,000/- paid to Ramesh Ramjibhai Patel and ₹ 7,00,000/- paid to Mukesh G. Patel, has held that the said amounts paid were advances to the concerned persons. Under Section 40(a)(ia) of the Act, the disallowance of an amount which is otherwise allowable as deduction to the assessee, while computing the business income of the assessee, can be made for non-deduction of TDS from the payments made to the payee. Since the assessee paid these amounts as advances to the said persons and had not claimed any deduction from the income of the year under consideration, therefore, no addition could have been made of the said amounts to the income of the assessee by disallowing the same u/s 40(a)(ia) of the Act. - Decided in favour of assessee. With regard to other disallowances, the CIT(A) has held that the amount of each bill was less than ₹ 20,000/- although the payments were made together which exceeded ₹ 20,000/- and, therefore, deleted the disallowances but has brought no material on record to show that whether the payments made were with respect to different contracts or the payments were made with respect to the same contract. If the payments are made with respect to the same contract, then they will be hit by the provisions of Section 40(a)(ia) as well as 194C of the Act and if the payments are made for separate contracts, then they will not be hit by the provisions of Section 194C and Section 40(a)(ia) of the Act. Since both the parties have not produced any material before us to verify the same; therefore, in the interest of justice, we set aside the order of the CIT(A) and restore the matter back to the file of the Assessing Officer to re-adjudicate the issue afresh. - Decided in favour of Revenue for statistical purposes.
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