Disallowance of expense u/s 40(a)(i) unsustainable in lieu of certificate of non-deduction of TDS issued u/s 195(2)

DCIT Vs Karvat Cover More Assist Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that once department issued the certificate of non-deduction of TDS under section 195(2), then department cannot disallow the same expenditure under section 40(a)(i) on the allegation that assessee failed to deduct TDS. Facts- During the course of assessment proceedings, it was observed that the assessee has paid management fees amounting to 5,40,49,783, to one of the Cover-More Group Companies, i.e., Cover-More Insurance Services Pty Limited, Australia. Accordingly, the assessee was asked to explain regarding the nature...