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2022 (2) TMI 916 - AT - Income TaxDisallowance u/s. 40(a)(ia) - non-deduction of TDS under respective provisions of the Act - assessee claims that although it had not deducted TDS on those expenses which have been disallowed by the Assessing Officer, but payees have duly included sum paid by the assessee in return of income filed by them for relevant assessment year and also paid due taxes thereon - HELD THAT:- Since, the assessee was not given sufficient time to file necessary details, including income-tax returns and certificate from payees to prove that payment made by the assessee is part of their income tax returns, to invoke second proviso to section 40(a)(ia) of the Act, the issue may be set aside to the file of the Assessing Officer. We find that an identical issue has been considered by the Tribunal in the case of M/s. Mani Nagappa Motors Madurai P. Ltd [1998 (5) TMI 6 - SUPREME COURT] where under identical circumstances, the Tribunal set aside the issue to file of the Assessing Officer for verification of claim of the assessee that payees had duly offered payments in their income tax returns and paid due taxes thereon. In this view of the matter and consistent with the view taken by the co-ordinate Bench, we set aside order passed by the learned CIT(A) and restore the issue to file of the Assessing Officer and direct the Assessing Officer to reconsider the issue in light of claim of the assessee and also second proviso to section 40(a)(ia) - Appeal filed by the assessee is treated as allowed for statistical purposes.
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