No Disallowance for non-deduction of TDS if payee includes the same amount in his ITR and paid taxes on the same

Brief of the case: The assessee had made payment to the labour contractors without deducting TDS on the same and claimed the same as an expense in his profit & Loss account. AO disallowed the same as per sec 40(a)(ia) for non-deduction of TDS. Assessee relied on second proviso to sec 40(a)(ia) which confirm that the expense will not be disallowed even if TDS had not been deducted on the expense debited to the profit & loss account provided assessee proves that the amount on which TDS had not been deducted has been taken by deductee assessee in his respective ITR and taxes on the same ...