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2021 (9) TMI 796 - ITAT DELHITDS u/s 194IA - payment for land advance - non-deduction of TDS in violation of Section 40(a)(ia) - AO disallowed as advance for purchase of property by the assessee for not deducting TDS u/s 194IA and added this amount to the income of the assessee u/s 56(2)(viib) while at the same time referring to the provisions of Section 40(a)(ia) - HELD THAT:- Such action of the AO cannot be upheld as the provisions of Section 40(a)(ia) are applicable only to the expenditure claimed while computing income under the head “profit and gains of business or profession” of the Income Tax Act, 1961. In this case, this amount has not been claimed as expenditure being the amount paid as advance for acquisition of a capital asset. Further, we also find that the provision of Section 56(2)(viib) would not be attracted even remotely in this case. The order of the ld. CIT (A) is affirmed. Appeal of the revenue is dismissed.
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