No Disallowance U/s. 40(a)(ia) For TDS Already Paid During The Year: HC

Honorable Allahabad High Court approves the special bench judgment in the case of Merilyn Shipping and Transport Ltd.  and held that dis allowance u/s. 40(a)(ia) applies only to amounts ‘payable‘ as of 31st March and not to amounts already ‘paid‘ during the year. ISSUE- In the present case the A.O. disallowed expenses on the ground that under Section 40 (a) (ia) expenses could not be allowed as no tax was deducted at source under Chapter XVII (B). HELD – We do not find that the revenue can take any benefit from the observations made by the Special Bench of the Tr...