Case Law Details
CIT Vs M/s Dedicated Healthcare Services (TPA) India Pvt. (Bombay High Court)
Conclusion: Section 40(a)(ia) can be applied only when amount sought to be disallowed has been claimed as an expenditure/deduction. In absence of the amount having been claimed as expenditure while determining the income, dis allowance would not be attracted.
Held:In the instant case, assessee carrying on business as a third party administrator made payments to various hospitals without deducting tax under section 194J. AO invoked section 40(a)(ia) for making disallowance. It was held the pre-condition for application of section 40(a)(ia) is claiming of amount sought to be disallowed as an expenditure/deduction. Thus, on failure to deduct the tax at source in the absence of the amount having been claimed as expenditure while determining the income, would not attract dis allowance.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. By these appeals, the Revenue has proposed common questions and stated to be substantial questions of law.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
