Section 40(a)(ia) applies only when there is no TDS deduction

Scrabble Entertainment Ltd Vs ACIT (ITAT Mumbai) Once there is compliance to TDS provisions, even if there is short deduction of TDS or TDS has been deducted under different sections, there is no scope for the AO to disallow expenditure u/s 40(a)(ia) of the Act as the provisions u/s 40(a)(ia) is applicable only when there is no TDS deduction. This legal proposition is supported by the decision of Hon’ble Calcutta High Court in the case of CIT vs SK Tekriwal (supra) wherein it was held that if there is lesser deduction of TDS due to any difference of opinion, no disallowance can be made u/s 4...