Disallowance u/s 40(ia) for non-deduction on social security contribution to expat employees unsustainable

DCIT Vs RATP Dev Transdev India Pvt. Ltd (ITAT Delhi) ITAT Delhi held that social security contribution doesn’t constitute income from salary in the hands of expatriate employees. Hence, disallowance u/s 40(ia) for non-deduction of TDS on the same is unsustainable in law. Facts- The notice u/s 143(2) of the Act were issued and assessment proceedings were initiated against the assessee. The assessment order came to be passed by making an addition of Rs. 2,72,66,619/- being difference between receipts as per 26AS and as per books of accounts/audited accounts, is income of the assessee u/s 28 o...