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2017 (1) TMI 943 - AT - Income TaxTDS u/s 194J - Disallowance under section 40(a)(ia) - non deduction of tax at source on the payments made by the assessee hospital to the doctors and pathology laboratory in relation to inpatients - Held that - Admittedly neither the AO nor the Ld. CIT(A) have added the amount collected by the hospital from the patients on behalf of the doctors as income of the hospital. What has been disallowed is the expenditure; that too on account of non deduction of TDS as per the provisions of section 194J of the Act. The disallowance has been made accordingly under section 40(a)(ia) of the Act. Admittedly the assessee hospital has not debited the said expenditure to its P & L account. Once the amount paid has not been claimed as expenditure there cannot be any question of disallowance of the same. When an expenditure has not been claimed at all how can the same be disallowed. Without going into further aspects of the matter the disallowance in this case under section 40(a)(ia) of the Act is not attracted at all. The same is accordingly ordered to be deleted. - Decided in favour of assessee Addition of Bisi payment under section 69C - Held that - This issue requires re-examination at the hands of the AO. If the assessee will be able to prove that the Bisi payments were out of the income declared during survey action then the same cannot be taxed twice. We therefore restore this issue to the file of the AO with a direction to decide the same afresh. Needless to say that the AO will give proper opportunity to the assessee to explain his case and then the AO will pass a speaking order in accordance with law on this issue. This appeal of the assessee is therefore treated as partly allowed for statistical purposes.
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