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2019 (8) TMI 1405 - AT - Income TaxTDS u/s 194C - Disallowance of expenses u/s 40(a)(ia) - flight handling charges - HELD THAT:- Second proviso to section 40(a)(ia) read with first proviso to section 201(1) which has been inserted in the statute w.e.f. 1.4.2013, is a beneficial provision and has to be given retrospective effect. Here in this case, the disallowance u/s 40(a)(ia) has been made by the AO on the ground that assessee while making the payment to Air India has not deducted TDS. The assessee’s case has been that, it is purely reimbursement of expenses given on behalf of its clients which has been reimbursed. At the stage of CIT (A) assessee has filed certificate in Form No. 26A of the Chartered Accountant of Air India certifying that amount paid to Air India by the assessee has been credited by the Air India in its books of accounts for the financial year 2011-12 and has been taken into account the return of income filed by Air India for Asstt. Year 2012-13 and same has been included in the gross total income. Once there is a categorical finding of fact based on material placed before CIT (A), i.e., certificate in Form No. 26A of the Chartered Accountant which is the statutory requirement, then there is no point to sending it back to the AO once again. Accordingly the order of the Ld. CIT (A) is confirmed and the grounds raised by the revenue are dismissed.
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