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2016 (9) TMI 1041 - AT - Income TaxDisallowance of expenditure considering it as non-business expenditure being gifts given to Doctors - Held that:- We observe that assessee has duly accepted to have given the gifts on various items including mobile phone, jewellery, dinner set etc. to various doctors or maintaining cordial business relationship. We further observe that ld. CIT(A) has rightly observed that all these doctors are earning professional income in the course of providing professional services and they have received these gifts. We agree with this view that looking to the materiality of the amount which is ₹ 5,97,314/- it was necessary on the part of the assessee to provide complete details containing names, addresses of the doctors who have accepted these gifts so that it could have facilitated the Revenue to recover the due taxes from them. We find that assessee is unable to provide these details. Therefore, in the given facts and circumstances, we are of the view that ld. CIT(A) has rightly sustained the addition. We uphold the same and dismiss the ground of assessee. TDS u/s 194J - payments made to doctors as allowable without deducting TDS - disallowance u/s 40(a)(ia) - Held that:- Respectfully following the judgment of Hon. Delhi High Court in the case of CIT vs. Ansal Landmark Township (P) Ltd. (2015 (9) TMI 79 - DELHI HIGH COURT) and Rajeev Kumar Agarwal vs. Addl. CIT (2014 (6) TMI 79 - ITAT AGRA) wherein it was held that the second proviso to section 40(a)(ia) is declaratory and curative in nature and it has retrospective effect from 01.04.2005, we restore this issue to the file of Assessing Officer with the direction that assessee shall provide before him all the details with regard to the recipients of the income of having received ₹ 53,41,049/- and taxes paid by them. We further direct the Assessing Officer to carryout necessary verification in respect of the payments and taxes of such income and also filing of income-tax return by the recipients. Needless to mention that adequate opportunity will be provided to the assessee for filing necessary details to show that the said recipients have reflected the receipts in their books of account and offered the same to tax in the period under consideration. In case the Assessing Officer finds that the recipients have duly paid the taxes on the income, the addition made by the Assessing Officer shall stand deleted. This ground of assessee is allowed for statistical purposes.
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