No disallowance under Section 40(a)(ia) if payee has already paid taxes: ITAT Jaipur

Raj Auto Wheels (P) Ltd Vs JCIT (ITAT Jaipur) Introduction: The recent case of Raj Auto Wheels (P) Ltd vs. ACIT before the Income Tax Appellate Tribunal (ITAT) in Jaipur brought to light three critical issues: Estimation of Sales, Deferred Sale, and Disallowance under Section 40(a)(ia) read with Section 194A. In a meticulous examination of these matters, the Tribunal provided nuanced rulings, shedding light on the complexities of income assessment. 1. Estimation of Sales and Deferred Sale: The assessing officer, in line with the Commissioner of Income Tax (Appeals) [CIT(A)]’s directives, es...