Disallowance of expense u/s 40(a)(ia) untenable when TDS deducted at lower rates

M.V.A. Seetharama Raju Vs DCIT (ITAT Chennai) ITAT Chennai held that if TDS is deducted by applying wrong provisions or at lower rates, the sum paid cannot be disallowed attracting provisions of section 40(a)(ia) of the Income Tax Act. Facts- During the year under consideration, the assessee had entered into agreements for supply of iron ore with various companies, however, the assessee could not supply iron ore to his customers as agreed due to Supreme Court order banning mining licenses. As per contractual terms with his customers, the assessee has agreed to pay penalty for cancellation of c...