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2020 (1) TMI 1612 - AT - Income TaxRectification of mistake u/s 254 - Addition u/s 40(a)(ia) - time limit for passing an order under Sec.201 - TDS on service coupons - HELD THAT:- As the Tribunal [2019 (8) TMI 230 - ITAT MUMBAI] had principally found favour with the aforesaid claim of the assessee, therefore, it had restored the matter to the file of the A.O, with a direction that in case the assessee satisfied the conditions in sub-section (1) of Sec.201, then it is not to be treated as an assessee in default, and resultantly as per the second proviso of Sec.40(a)(ia) no disallowance under the said statutory provision would be called for in its hands. Admittedly, the aforesaid two aspects on the basis of which the validity of the disallowance under Sec.40(a)(ia) was inter alia assailed before us by the assessee had advertently remained omitted to be adjudicated upon while disposing off the appeal. As we have already restored the matter to the file of the A.O, therefore, in all fairness we direct him to also consider the aforesaid claims of the assessee in the course of the ‘set aside’ proceedings. viz. (i) that, no disallowance under Sec.40(a)(ia) could be made after the expiry of the time for passing of order under Sec. 201 of the Act; and (ii) that, in case the disallowance is sustained, the same is liable to be restricted to the extent of 30% of the total amount of service coupons. On the basis of the aforesaid observations our order passed while disposing off the appeal of the assessee i.e Mahindra & Mahindra Ltd. Vs. DCIT, Range 2(2), Mumbai [2019 (8) TMI 230 - ITAT MUMBAI] is modified to the said extent.
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