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2018 (2) TMI 594 - AT - Income TaxDisallowance u/s 40(a)(ia) - additions due to TDS default - Held that:- We hold that the second proviso to section 40(a)(ia) is applicable with retrospective effect. Consequently if recipient of the amount has considered the same for computation its income offered to tax then no disallowance is called for u/s 40(a)(ia) of the Act. See CIT vs. Ansal Landmark Township Pvt. Ltd. (2015 (9) TMI 79 - DELHI HIGH COURT) The assessee filed the additional evidence in support of its claim that the recipient have included this amount in the income offered to tax however, the CIT(A) declined to admit the additional evidence. We find that the additional evidence filed by the assessee can be verified by the AO from the record of the Department or otherwise. We admit the additional evidence and direct the AO to verify the additional evidence filed by the assessee and in case the AO is satisfied with the evidence filed by the assessee that the recipient of the amounts have considered the same while computing their income offered to tax then, in view of the second proviso to section 40(a)(ia) of the Act no disallowance can be made u/s 40(a)(ia). Appeal of the assessee is allowed for statistical purpose.
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