S.40(a)(ia) not applicable to amounts paid by 31st March

ITAT VISAKHAPATNAM (SPECIAL BENCH) Merilyn Shipping & Transports v. Assistant Commissioner of Income-tax Date of Decision – 29.03.2012 Question: “Whether Section 40(a)(ia) of the Income Tax Act can be invoked only to disallow expenditure of the nature referred to therein which is shown as  payable as on the date of the balance sheet or it can be invoked also to disallow such expenditure which become payable at any time during the relevant previous year and was actually paid within the previous year.” Held that section 40(a)(ia) cannot be invoked in respect of amounts...