Case Law Details
We find that the judgment of the Hon’ble Allahabad High Court is in favour of the assessee. At the same time, we find that the orders of the Calcutta High Court and the Gujarat High Court are against the assessee. In such circumstances, the rule of Judicial Precedence demands that the view favorable to the assessee must be adopted, as held by the Hon’ble Supreme Court in the case of CIT vs. Vegetable Products Ltd., 88 ITR 192. Following the above fundamental rule declared by the Hon’ble Supreme Court, we have to follow the judgment of the Hon’ble Allahabad High Court, which is in favor of the assessee. Accordingly, we hold that the disallowance under section 40(a)(ia) applies only to those amounts ‘payable’ and not to those amounts ‘paid’. Accordingly, we uphold the order of the Commissioner of Income-tax(Appeals) in the present case. The appeal filed by the Revenue is liable to be dismissed.
INCOME TAX APPELLATE TRIBUNAL, CHENNAI
ITA No.2076(Mds)/201 2 – Assessment Year : 2009-10
C.O. No.155(Mds)/2013 in – ITA No.2076(Mds)/2012
The Income-tax Officer Vs. M/s.Theekathir Press
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