Profit increased due to disallowance U/s. 40(a)(ia) is eligible for deduction U/s. 10A

 The assessing officer has made a dis-allowance under section 40(a)(ia) in the draft assessment for want of deduction of tax source in respect of the expenses which are claimed to be reimbursement towards power and fuel expenses. The assessing officer held that these expenses are incurred against the services rendered and, therefore, liable for TDS. Since the assessee did not deduct the TDS therefore the assessing officer disallowed this amount of Rs. 6,08,46,978. Before the DRP the assessee contented that these expenses are not incurred towards any service rendered by M/s. Golflinks Software...