No disallowance U/s. 40(a)(ia) for Payment to resident without TDS if he paid tax on such income

Dy. CIT Vs. Aditya Construction Company India (P) Ltd. (ITAT Hyderabad) The first proviso to section 210 (1) had been inserted to benefit the assessee. It also stated that where a person fails to deduct tax at source on the sum paid to a resident or on the sum credited to the account of a resident such person shall not be deemed to be an assessee in default in respect of such tax if such resident had furnished his return of income under section 139. No doubt, there was a mandatory requirement under section 201 to deduct tax at source under certain contingencies, but the intention of the legisl...