Payments to outside lawyers which was not claimed as deductions in computation of profits cannot be disallowed under section 40(a)(ia)

There has been a lot of emphasis in the orders of the authorities below, as indeed in learned Departmental Representative’s arguments before us, about the scope of assessee’s obligations to deduct tax at source under section 194J. However, having regard to the fact that we are in seisin of the limited question of disallowance under section 40(a)(ia), we see no need to deal with that aspect of the matter at this stage. As far as this appeal is concerned, all these things issues regarding tax deduction at source obligations will be relevant only if one is to come to the conclusion that secti...