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2016 (8) TMI 252 - AT - Income TaxTDS u/s 194C - non deduction of tds on freight paid - disallowance made u/s 40(a)(ia) - Held that:- In view of amendment made to second proviso to section 40(a)(ia) by Finance Act, 2012, the disallowance should not be made by the AO if the payments made to payees have been assessed in their respective hands. Under these circumstances, respectively following the order of the Tribunal in assessee’s own case for A.Y. 2007-08 as well as aforesaid order of Hon’ble Delhi High Court in the case of Ansal Land Mark Township (P) Ltd [2015 (9) TMI 79 - DELHI HIGH COURT], we send this issue involved in A.Y. 2008-09 and 2009-10 also back to the file of the AO. The AO shall decide this issue in the light of the legal position as discussed above. The AO is directed to verify this fact after taking requisite guidance from the aforesaid judgments and decide this issue after giving adequate opportunity of hearing to the assessee. In case the need arises, the AO should use appropriate powers under the law to verify these facts directly from the payees and/or respective Assessing Officers of the payees. In case income of the payees are assessed and impugned sum has been included in the accounts of the payees, then no disallowance should be made u/s 40(a)(ia) in the hands of the assessee on account of non-deduction of tax at source. With these directions all appeals are treated as allowed for statistical purposes.
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