Section 40, 194C of Income Tax Act, 1961—In the instant case, AO has invoked provisions of Section 40(a)(ia) for making disallowance of expenses to the tune of Rs. 2,19,24,980/- , which stood later confirmed by learned CIT(A).

Held that— we are of the considered view that the issue of disallowance of expenses by invoking provisions of Section 40(a)(ia) read with provisions of Chapter XVII-B for both the ay’s : 2013-14 and 2014-15 needs to be restored to the file of Ld.CIT(A) for fresh adjudication . The Ld.Counsel for the assessee has made statement before us that if given one more opportunity, the assessee will produce all the necessary and relevant evidences/ certificates as required under the statute/rules to substantiate that the payees have duly included the aforesaid amounts as income in their return of income filed with Revenue and paid due taxes to the credit of Central Government. Now, the onus is entirely on the assessee to produce all relevant evidences/ certificates as are required under the law before learned CIT(A) in set aside proceedings for both the ay’s to justify that no additions are warranted in the case of the assessee u/s 40(a)(ia) of the 1961 as these payees have included aforesaid amounts paid by the assessee in return of income filed with Revenue as their income and paid due taxes to the Credit of Central Government.[M/S. KAVYA TRAVEL PVT. LTD. VERSUS THE INCOME TAX OFFICER, CORPORATE WARD-4 (4) , CHENNAI-34.] [2019] 18 ITCD Online (13) [ITAT CHENNAI]