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2021 (1) TMI 326 - HC - Income TaxTDS u/s 195 - Disallowance u/s 40(a)(ia) - payments made sub contractor - Tribunal setting aside the disallowance made under section 40(a)(ia) by holding that assessee made only journal entries in the books and as such it does not require deduction of TDS - HELD THAT:- It has been held by the Supreme court in ‘VICTORIA MEMORIAL HALL vs. HOWRAH GANATANTRIK NAGRIK’ [2010 (3) TMI 1059 - SUPREME COURT] reasons were held to be the heartbeat of every conclusion, apart from being an essential feature of the principles of natural justice, that ensure transparency and fairness, in the decision making process Tribunal has merely recorded its conclusion and has not assigned any reasons in support of the conclusion. Thus, for the aforementioned reasons, the impugned order dated passed by the tribunal is hereby quashed. The substantial question of law is answered accordingly. Tribunal is directed to decide the claim of the assessee under Section 40(a)(ia) of the Act afresh on the basis of the material available on record and on the basis of the reasoning assigned by the AO as well as CIT(Appeals) and shall also advert to the issue whether the condition precedent for invocation of Section 40(a)(ia) of the Act have been fulfilled in the fact situation of the case.
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