Section 40(a)(ia) Disallowance Doesn’t Nullify TDS Default: ITAT Mumbai

DCIT Vs Tata Communications Transformation Services Limited (ITAT Mumbai) Conclusion: Disallowance under section 40(a)(ia) and liability under section 201 operated independently, and assessee could not escape TDS liability merely by making a partial disallowance in its return. However, since assessee was not given an opportunity to establish that conditions under the proviso to section 201(1) were met, the matter was remanded to AO for fresh verification and adjudication in accordance with law. Held: Assessee made year-end provisions of ₹90.89 crore for expenses in F.Y. 2017-18 without deduc...