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2021 (9) TMI 135 - AT - Income TaxAddition u/s.69B - unexplained investment - HELD THAT:- No discrepancy had been pointed out by the revenue with regard to transactions that had happened during the year - AO had admitted the fact that the discrepancy had happened in earlier year. While it is so, there is absolutely no case for the Revenue to make any addition towards unexplained investment during the year. It is not in dispute that the transactions during the year did not contain any discrepancies. All the transactions during the year remain properly explained by supporting documents. Admittedly, partner’s capital account is reflected in the liability side of the balance sheet, for which, even if there is any discrepancy, there cannot be any addition towards unexplained investment in the hands of the assessee firm u/s.69B as made by the lower authorities. Hence, we have no hesitation to delete the addition made on account of unexplained investment u/s.69B. TDS u/s 194C - Disallowance of expenditure u/s.40(a)(ia) - HELD THAT:- In the case of CIT vs. S.K. Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT] had held that the provisions of Section 40(a)(ia) of the Act could not be made applicable for short deduction of tax at source. In the instant case before us, admittedly, the assessee had deducted tax @1% of total payments made to M/s. Revitt Engineering. The case of the revenue seems to be that tax should have been deducted at higher rate u/s.194C for which disallowance u/s.40(a)(ia) of the Act was made - we direct the AO to delete the disallowance u/s.40(a)(ia) of the Act in the facts and circumstances of the instant case. Accordingly, the ground No.2 raised by the assessee is allowed.
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