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2016 (8) TMI 693 - AT - Income TaxDisallowance u/s.40A(3) - AR’s submission that as during relevant assessment year, the provisions of the Act were only attracted when each payment exceeded a sum of ₹ 20,000/- and the Act did not stipulate about the clubbing of payments made in the entire day for determining the disallowance - Held that:- fore us, Revenue has not placed any material on record to demonstrate that the amendment made to sub-section(3) to section 40A by Finance Act, 2008, would be applicable to AY 2008-09. Further, there is no finding of lower authorities as to whether each of the payment made by the assessee exceeded ₹ 20,000/- or the aggregate payment in the year exceeded ₹ 20,000/-. Apart from aforesaid, we find that the Hon’ble Jurisdictional High Court in the case of Anupam Tele Services vs. ITO reported at (2014 (2) TMI 30 - GUJARAT HIGH COURT ) has held that the paramount consideration of section 40A(3) is to curb and reduce the possibilities of black money transactions and section does not eliminate considerations of business expediencies. In view of the aforesaid facts, we are of the view that the issue needs to be reexamined at the end of ld.CIT(A). We, therefore, restore the issue back to the file of ld.CIT(A) to decide the issue afresh - Decided in favour of assessee for statistical purposes. Disallowance u/s.40(a)(ia) - non deduction of tds on payment of labour expenses, crane hire charges, interest payment and audit fee - Held that:- here is no finding of the lower authorities on the issue as to whether the payments made by the assessee to the payees have been being considered by them as their income. In view of the aforesaid facts, we are of the view that the issue needs to be restored back to the file of ld.CIT(A) to decide the issue afresh in the light of our aforesaid discussion, the decision of the Coordinate Bench in the case of Rajeev Agarwal (2014 (6) TMI 79 - ITAT AGRA ) and in accordance with law. - Decided in favour of assessee for statistical purposes.
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