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2015 (8) TMI 753 - AT - Income TaxDisallowance u/s 40(a)(ia) - non deduction of TDS on commission and service charges - Held that:- As relying on case of Rajeev Kumar Agarwal vs. ACIT [2014 (6) TMI 79 - ITAT AGRA] once it is proved that the deductee has paid taxes on the commission received from the assessee, the assessee shall be deemed to have deducted and paid taxes of such sum on the date of furnishing the return of income. In the light of this proposition, we are of the view that no disallowance under section 40(a)(ia) of the Act can be made if it is established that the deductee has paid tax on the commission received and for its verification the matter has to be restored back to the file of the Assessing Officer. We accordingly set aside the order of the ld. CIT(A) and restore the matter to the file of the Assessing Officer for making necessary verification and if it is established that the deductees have made payment of tax on the commission received, no disallowance under section 40(a)(ia) of the Act shall be made - Decided in favour of revenue for statistical purposes.
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