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2016 (4) TMI 825 - AT - Income TaxTDS u/s 194C OR 194I - disallowance u/s 40(a)(ia) - Held that:- There is nothing in the section which say that disallowance could be made u/s 40(a)(ia) of the Act for short deduction of tax at source. - Decided in favour of assessee Addition being liquidated damages paid on the breach of a contract - Held that:- CIT(A) has recorded his observation in detail in respect of deletion of the addition made by the ld. Assessing Officer by recording a clear finding that the amount paid by the assessee are in the nature of compensation paid to the parties for failure to deliver any or all the goods, or to perform the specified terms and conditions within the period specified under the contract. By no stretch of imagination can such expenses be hit by Explanation 1 to sec. 37(1) of the Act, as there was neither any breach of law nor any offence committed or the said expenditure was of the nature that was prohibited under law. - Decided in favour of assessee
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