TaxTMI 
TaxTMI 
2019 (8) TMI 1405
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.... deleting the addition of Rs. 1,75,76,690/- made on account of disallowance of expenses u/s 40(a)(ia) of Income Tax Act, 1961." 2. The facts in brief are that Assessee Company is engaged in the business of aviation related services like ground handling, transportation of cargo and other related services. The AO noted that assessee company has made payment of Rs. 1,75,76,690/- to Air India Ltd. on account of ground handling services which have been booked under the head, 'flight handling charges'. The assessee's contention has been that it has been made payment to the Air India for and on behalf of its clients, which was later on reimbursed by its client. Thus, the entire nature of services was on account of reimbursement and there is no ex....
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....aid to Air India by M/s Air Shagoon Network Pvt. Ltd. of Rs. 1,29,07,028/- without deduction of the tax has been credited by the Air India in its books of accounts for the F.Y. 2011- 12 and has been taken into account in the return of income filed by M/s Air India for AY. 2012-13 and the receipt of the amount of Rs. 1,29,07,028/- has been included in the gross total income of Rs. 1,00,63,13,65,415/-. The appellant further submitted that the Assessing Officer has disallowed payment of Rs. 1,75,76,690/-. However, the actual payment made to Air India is only Rs. 1,29,07,028/-. While framing the assessment order, the Assessing Officer has taken into account the cancelled draft in the calculations. The appellant has filed reconciliation of state....
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....e certificate from M/s Air India in Annexure 'A' which is in conformity with the proviso to Section 201(1), hence, the disallowance of Rs. 1,75,76,690/- is deleted. 3. Before us, Ld. DR submitted that the certificate in Form No. 26A by the Chartered Accountant of Air India was not placed before the AO and hence it was additional evidence before the Ld. CIT (A,) therefore matter should be restored back to the file of the AO for verification. 4. Now it is a well settled proposition that second proviso to section 40(a)(ia) read with first proviso to section 201(1) which has been inserted in the statute w.e.f. 1.4.2013, is a beneficial provision and has to be given retrospective effect. Here in this case, the disallowance u/s 40(a)(ia....