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2015 (6) TMI 457 - AT - Income TaxDisallowance under section 40(a)(ia) - non deduction of TDS on payments made by the assessee on account of consultancy charges to anesthetist and architect/contractor - CIT(A) deleted disallowance - Held that:- Both the amounts in question on account of consultancy charges and construction expenses were fully paid by the assessee during the year under consideration and there being no amount payable on these accounts, the Ld. CIT(A), in our opinion, was fully justified to hold that the disallowance under section 40(a)(ia) could not be made by relying on the decision of the Special Bench of this Tribunal at Visakhapatnam in the case of M/s. Merlyn Shipping and Transports vs. ACIT, Range- 1, Visakhapatnam [2012 (4) TMI 290 - ITAT VISAKHAPATNAM ]. Moreover, as rightly submitted on behalf of the assessee before the authorities below as well as before us, the amount of ₹ 4 lakhs paid towards construction expenses constituted capital expenditure which was not claimed by the assessee as deduction and the same therefore even otherwise could not be disallowed by invoking the provisions of section 40(a)(ia) - Decided against revenue. Unexplained investment in the construction of hospital building - CIT(A) restricted part addition - Held that:- In the present case, the books of accounts reflecting the construction expenses regularly maintained by the assessee were produced for verification before the A.O. and since the same were not rejected by the A.O. by pointing out specific and material defects, we find merit in the contention of the Ld. Counsel for the assessee that reference made by the A.O. to the DVO for estimating the cost of construction itself was invalid and no addition on the basis of such invalid report could be made on account of unexplained investment allegedly made by the assessee in the construction of building. Although, this issue is decided by the Ld. CIT(A) against the assessee and no appeal has been preferred by the assessee before the Tribunal contesting this issue, Rule-27 of the Appellate Tribunal Rules, 1963 allows the assessee as a respondent, though he is not appealed, to support the order appealed on any of the grounds decided against him. Accordingly, relying on the said Rule, we uphold the impugned order of the Ld. CIT(A) restricting the addition of ₹ 25,38,893 made by the A.O. on account of unexplained investment allegedly made by the assessee in the construction of hospital building to ₹ 3,67,387, although on a different ground. - Decided against revenue.
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