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2017 (3) TMI 135 - AT - Income TaxTds u/s 194C - non deduction of TDS on packaging material and cloth bags payments - addition u/ Section 40(a)(ia) - Held that:- CIT(A) takes note of the Assessing Officer’s finding that the assessee had been deducting TDS on other payments made to the same party. They nowhere specifically reject assessee’s contention as not to have purchased any printing made on the relevant plastic bags. We observe in these peculiar facts that the Assessing Officer has put a negative burden on the assessee to prove a negative fact which the CIT(A) has upheld after concluding that it had indeed deducted TDS on other bills without comparing the nature of payments therein. We thus accept assessee’s arguments qua former disallowance on packaging material made u/s.40(a)(ia) of the Act. Disallowance on purchase of cloth bags done from M/s. Desai Brothers herein as well the Assessing Officer quoted assessee’s failure in proving as to have no printing made for the plastic bags in question. The CIT(A)’s findings are also on identical lines that the assessee had deducted TDS to payments made to the very party on other bills. We reiterate our relevant findings in preceding paragraph to delete this disallowance as well. Correctness of interest disallowance - Held that:- As the assessee could not submit any evidence in support of its claim that the money in question received from M/s. Pharmalab India Pvt. Ltd. was in the nature of return of advance given for machines. He seeks one more innings by stating that the assessee is very much ready and willing to file all necessary evidence before the assessing authority. After arguing for sometime against this contention, learned Departmental Representative does not oppose the assessee’s prayer seeking to remit the issue back to the Assessing Officer. We appreciate this fair stand and direct the assessing authority to decide the instant issue afresh after affording adequate opportunity of hearing to the assessee.
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