TMI Blog2022 (4) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of section 40(a)(ia) - HELD THAT:- We noted that now the ld.counsel for the assessee made only submission that the second proviso to section 40(a)(ia) of the Act, which is retrospective, the assessee should be allowed to take the benefit of the same - assessee stated that the requisites as noted in the CBDT circular and rules relating to second proviso to section 40(a)(ia) is ready to fulfill as he has gathered information that the recipient parties has already declared the job work charges in their respective returns of income. The ld. Counsel stated before us that the job work payments were made only to one party i.e., VRV Zips Process. The ld. Senior DR has no serious objection in setting aside the matter. As the assessee cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as disclosed in the profit loss account and the VAT returns i.e., purchases. The AR could explain the incidental expenses amounting to ₹ 4,89,478/- but could not reconcile the remaining difference of ₹ 6,99,492/-. Accordingly, the AO added the difference. Aggrieved, assessee preferred appeal before CIT(A). Before CIT(A), the assessee filed further reconciliation stating that the assessee company had accounted VAT credit disallowed for AY 2012-13 of ₹ 1,37,130/- and for AY 2013-14 of ₹ 1,35,858/-. These two VAT credits have been debited by the assessee to the purchase account. Similarly, the assessee company had also reversed the VAT claim rejected amounting to ₹ 2,06,595/- in relation to VAT refund claimed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has collected some evidences in regard to the difference in purchases and VAT credit claimed on the same and the same may kindly be remitted back. We noted that the plea of the assessee is reasonable and hence, we direct the AO to allow one more opportunity to reconcile the difference of ₹ 2,19,909/-. Accordingly, this issue is remitted back to the file of the AO. 6. The next issue in this appeal of assessee is as regards to the order of CIT(A) confirming the disallowance of job work charges for non-deduction of TDS by the AO amounting to ₹ 92,104/- by invoking the provisions of section 40(a)(ia) of the Act. 6.1 We have heard rival contentions and gone thorugh the facts and circumstances of the case. We noted th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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