2010 (1) TMI 1194

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....- This appeal by the Revenue is against the order dated 29.07.2009 of Ld. Commissioner of Income Tax(Appeals)-XV, Ahmedabad for the Assessment Year 2006-07 cancelling the penalty of ₹ 7,42,707/- levied by the A.O. under section 271(1)(c) of the Income Tax Act, 1961. 2. Despite the service of notice through Registered Post, on the date of hearing neither anybody appeared from the side of t....

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.... section 40(a)(ia) of the Act out of payments made to labour, transport and carting expenses. 4. At the time of hearing, Shri M.C. Pandit, Sr. D.R. appearing on behalf of the Revenue contended that the assessee has concealed the particulars and furnished inaccurate particulars of income within the meaning of section 271(1)(c) of the Act. In order to claim the deduction, the assessee was required ....

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....he A.O. The books of accounts of the assessee were audited under section 44AB of the Act and the Audit Reports in Form No. 3CB and 3CD were duly furnished with the return of income. In the Tax Audit Report also, no TDS default has been pointed out by the auditors, which they are required to state. Prima facie, it appears that due to ignorance of the provisions contained in section 40(a)(ia) of the....