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2016 (11) TMI 604 - AT - Income TaxTDS u/s 194C - non deduction of tds on machine hire charges and transport charges - Held that:- We find that the Amendment has come into effect with retrospective date and as per the amended provision if the payee has included the receipt in its books of account and has offered for taxes then the disallowance on account of non-deduction of TDS will not arise. In this view of the matter, we concur with the view of the Ld. CIT(A) where it was held that the assessee is not default for non-deduction of TDS. Addition u/s 40(A3)- Held that:- Violation of provisions of Sec. 40(A3) of the Act with regard to the payment of machine hiring charges. In this connection, we are inclined to restore the matter back to the file of AO for fresh adjudication as per law with a direction to check whether the payment to the party concerned has been made in contravention to the provision of Sec. 40A(3) of the Act after providing reasonable opportunity of being heard to assessee.
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