2022 (8) TMI 1076

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....he Assessment Year (A.Y) 2009-10. 2. The brief facts of the case is that the assessee is an individual and engaged in the business of trading in shares. For the Assessment Year 2009-10, the assessee filed its Return of Income declaring total income of Rs. 7,74,280/- and the assessment was completed u/s 143(3) of the Act on 30/12/2011 determining the total income of Rs. 7,96,661/-. Thereafter the case was reopened u/s 147 of the Act, the assessee did not comply to notice u/s. 148. The assessee was served with 143(2) and 142(1) notices however the assessee has not responded to the same. Hence an ex parte assessment order was passed making the disallowance u/s. 40(a)(ia) of Rs. 86,47,000/-, on container charges paid to Container Corporation o....

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....rt). Considering the above decisions, it is held that disallowance u/s 40(a)(ia) cannot be made if recipient has offered payment made by assessee as income in their hands. The Assessing Officer is directed to verify above facts and if it is found that payee has already offered above amount as income in their return of income, disallowance u/s.40(a)(ia) made by Assessing Officer would not survive. However, the A.O. is free to take action in the case of the appellant u/s 201(1A)(i) of the Act for the payment of interest for the period from the date on which such tax was deductible on the above amount to the date of furnishing of the return of the income by the Deductee. While giving the appeal effect, the A.O. is directed to verify the Form....