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2015 (4) TMI 291 - AT - Income TaxDisallowance under section 40(a)(ia) r.w.s 194C - assessee failed to deduct tax under section 194C - it is the case of the assessee that no part of TDS remains to be payable by the end of the financial year - Held that:- Section 40(a)(ia) applies to only those amounts which remains payable only to the end of the previous year [ CIT vs. Vector Shipping Services (P) Ltd. [2013 (7) TMI 622 - ALLAHABAD HIGH COURT]. As relying on case of M/s. Vivil Exports P. Ltd. [2015 (4) TMI 255 - ITAT MUMBAI] accepting the proposition following the decision in the case of Vegetable Products Ltd., (1973 (1) TMI 1 - SUPREME Court), in which it has been held that in a case where there can be two views possible, then in that event the one which is in favour of the assessee has to be followed - Decided in favour of assessee. Short charged profit and loss receipt - CIT(A) accepted the contention of the assessee that percentage of the said receipt should be considered for taxation as every receipt has a corresponding expense and it is only the net that is required to be taxed and it would be appropriate if the profit rate of 8% is taken as income earned by the assessee on the said receipts - CIT(A) upheld the addition of ₹ 1,58,610/- in place of ₹ 19,82,630/- done by AO - Held that:- Carefully perusing the vouchers submitted by the assessee in the paper book. We find that except purchase of these items the assessee did not corelate them with the work performed so that it may be ascertained that these expenditure were actually incurred in relation to the receipts which have not been charged to the P&L account. However, in the interest of justice, we consider it just and proper to remand the matter to this extent, to the file of AO for re-adjudication of the same, after giving the assessee an opportunity of hearing and placing all the material on record to justify this expenditure to be incurred to the uncharged receipts to the P&L Account. We direct accordingly. Thus, we set aside the order passed by Ld. CIT(A) on this issue and direct the AO to re-adjudicate the same as mentioned above. - Decided in favour of revenue for statistical purposes.
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