The assessee company engaged in the business of coal transportation. Coal handling charges paid to three Tipper Owners through banking channel. The assessee company provided the name, addresses, PAN as also nature and basis of payment of ‘coal handling charges’ paid to three payees.The payees have being not filed their returns of income, the assessee Company requested the AO to make reporting to the AOs holding jurisdiction over the payee’s concerned and to make satisfactory inquiry and/or verification of evidences. However, the AO made disallowance on the ground of nonproduction of the demonstrable and irreputable evidence. The CIT (Appeals) passed the ex parte order on the ground of nonparticipation of the appellant in the appeal proceedings and confirmed the disallowance made by the AO. On appeal the Tribunal held that  the disallowance primarily on the premises of insufficient evidences, that there is no point of violation of provisions of Section 40(a)(ia).  To make avail the sufficient, and adequate opportunity to the assessee, the matter is restored back to the file of the learned AO.  (AY. 2012-13)