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2017 (10) TMI 821 - AT - Income TaxDisallowance of expenses - labor charges - disallowance on the ground that the assessee failed to deduct tax at source - whether filing of Form No.26A namely the certificate of the Chartered Accountant as prescribed under the proviso to section 201(1) of the Act can be taken as a conclusive proof that the recipients of the payment from the assessee has taken into account the sum received from an assessee on which no tax had been deducted at source for computing his income in such return of income? Held that: - the stand taken by the AO is quite vague. Form No.26A clearly specifies that the sum of ₹ 1,69,89,200/- is part of the gross contract amount of ₹ 7,87,57,116/- declared by Shri Banimali Koley as his contract receipts in the return of income filed for A.Y.2012-13. It is also clear from the remand report of the AO that it cannot be said that the assessee has not included the sum of ₹ 1,69,89,200/- received from the assessee in his gross receipts. The AO did not examine Shri Banimali Koley, if he had any doubts in this regard. He has however not chosen to do so but has given a remand report which is very vague. The certificate in Form No.26A has to be accepted as correct - disallowance sustained by CIT(A) u/s 40(a)(ia) of the Act should be deleted - appeal allowed - decided in favor of assessee.
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