No disallowance U/s. 40(a)(ia) if recipient already paid taxes on sources of income

Apurva Natvar Parikh and Co. (P) Ltd. Vs. Dy. CIT (ITAT Mumbai) The issue taken by the assessee in grounds of appeal no.2 is with regard to dis allowance of Rs. 1,26,65,630 under section 40(a)(ia) of the Act in respect of payment made to Saikrupa Food Services (P) Ltd. (SKFS) on the ground that the assessee failed to deduct the tax at source. The learned Counsel at the outset submitted that as per the second proviso to section 201 of the Act, the assessee has already furnished a certificate that the recipient has already offered the said amount in the income tax return and duly paid taxes th...