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2024 (1) TMI 1186 - ITAT AHMEDABADRevision u/s 263 - Disallowance u/s 40(a)(ia) on non deduction of TDS - HELD THAT:- As assessee has demonstrated that invoices were indeed raised and payments were made to the mentioned parties during the subsequent financial year, i.e., Financial Year 2010-11, for which the TDS was duly deducted and remitted to the Government. In support of its claims, the assessee has furnished a copy of the work orders, Form No.16A, a comprehensive chart delineating the details of the invoices, payments, and TDS payments, along with ledger accounts pertaining to both parties. Details furnished convincingly indicate that the work carried out by the two parties was quantified and crystalised during the subsequent year. Assessee's genuine admission of inadvertently including the names of the aforementioned parties in the list of entities with no TDS deduction, which was duly recognized by the AO during the framing of the assessment under section 143(3), it becomes evident that there is no justifiable ground for the Principal CIT to invoke power u/s 263 of the Act. As important to note that there is no revenue implication, and no prejudice has been inflicted upon the Revenue, as the applicable tax rate for the invoice payment in the subsequent year, during which the invoice payment was properly accounted for, included the appropriate TDS deduction. Considering the lack of substantial grounds for the CIT to exercise authority u/s 263 of the Act, and in light of the absence of justifiable reasons to alter the assessment framed by the AO u/s 143(3) we hereby quash and set aside the impugned order of the CIT passed u/s 263 and restore the original assessment order of the AO passed under section 143(3) of the Act. Assessee appeal allowed.
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