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2018 (1) TMI 972 - AT - Income TaxNon deduction tax at source u/s 194C - amount paid to the sub-contractors - Held that:- The AO does not dispute the assessee having passed on the amount to the sub-contractor. So, it stands admitted/undisputed by the AO that the assessee did not receive the amount and the addition made by the AO was unsustainable. Section 40(a)(ia) provides for non-deduction of a sum payable, on which, no TDS has been made or, where made, it has not been paid. In the present case, the factum of payment of TDS by the concerned Departments on the payment made, has been taken due note of by the AO. This does not stand disputed by the ld. CIT(A). But CIT(A) has introduced an altogether new aspect, that is, no TDS having allegedly been made by the assessee on payment made to the sub contractor - as the assessee has merely passed on the amount to the sub-contractor and TDS stands duly made thereon. That being so, there is, evidently, no violation of the provisions of section 40(a)(ia)- That being so, the addition made by the ld. CIT(A) is deleted. - Decided in favour of assessee
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