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2023 (2) TMI 744 - AT - Income TaxDisallowance us 43B OR 40A - Provision for Gratuity - disallowance of expenditure indicated in the tax audit report but not taken into account in computing the total income in the return of income - Appellant submits that it has already made disallowance of Provision of Gratuity inadvertently u/s 40A(7) as against us 43B thus disallowance made by the AO would amount to double disallowance and same shall be deleted - HELD THAT:- We are of the considered opinion that this issue be remanded to the jurisdictional Assessing Officer for de novo adjudication after necessary verification/examination of all the details. If upon verification, it is found that the amount has already been disallowed on account of the provision for gratuity under section 40A(7) of the Act then to that extent the disallowance under section 43B of the Act be deleted, otherwise the same will result in double disallowance of the same amount. Similarly, as regards the sum it is found that the amount has been paid by the assessee during the year then relief be granted to the assessee as per law. Needless to mention that no order shall be passed without affording reasonable opportunity of being heard to the assessee. As a result, the grounds raised by the assessee are allowed for statistical purposes.
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