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2016 (5) TMI 340 - AT - Income TaxRevision u/s 263 - Disallowance u/s u/s. 40A(7) - Held that:- While computing the total income for the year under consideration, the assessee has already disallowed u/s. 43B of the Act. Therefore, it can be safely concluded that there is no allowance of any deduction during the year under consideration.Surprisingly, we find that the Commissioner wanted the A.O to disallow the same u/s. 40A(7) of the Act. We fail to understand when the assessee has not claimed any deduction during the year under consideration how could the Commissioner direct the A.O to disallow the same, when no deduction has been claimed. - Decided in favour of assessee Disallowance u/s. 43B - Held that:- Commissioner is apprehensive that since the assessee has made disallowance u/s. 43B of the Act, the assessee will claim the deduction in the year in which the payment will be made. We are of the view that such apprehension of the Commissioner can be considered, if at all possible, in the year of the claim of deduction. However, in so far as the year under consideration is concerned, we do not find any reason in making the assessment order erroneous and prejudicial to the interest of the revenue. We accordingly set aside the order of the Commissioner made u/s. 263 of the Act and restore that of the A.O made u/s. 143(3) of the Act. - Decided in favour of assessee
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