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2018 (8) TMI 1962 - ITAT PUNERevision u/s 263 - Disallowance u/s 40A(3) or u/s 69C - payments to truck owners - disallowance HELD THAT:- CIT(A) holds that no disallowance is warranted u/s 40A(3) but he further goes on to add that since the assessee has failed to explain the sources of said expenditure, addition was confirmed under section 69C. The present proceedings were initiated against the assessee consequent to exercise of jurisdiction by the Commissioner u/s 263. It may be put on record that earlier issue whether there is any violation of section 40(a)(ia) has been decided in favour of assessee; hence the AO took up proceedings for deciding the issue of violation of provisions of section 40A(3) and the same was decided against the assessee. CIT(A) has decided the said issue in favour of assessee but the order of CIT(A) in making disallowance u/s 69C is not warranted. In the present case, since the issue was limited to violation of provisions of section 40A(3) of the Act and hence, we find no merit in the order of CIT(A). Reversing the second part of finding of the CIT(A), we allow the grounds of appeal raised by the assessee.
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