Section 40(a)(ia) not gets attracted for lesser deduction of TDS

DCIT Vs Chandabhoy & Jassobhoy (ITAT Mumbai)

Section 40(a)(ia) can be invoked only in the event of non deduction of tax (TDS) but not for lesser deduction of tax.  Hence, this will not be the reason to disallow the expense u/s 40(a)(ia) just because of less deduction since section 40(a)(ia) can be invoked only in the event of non deduction of tax but not for lesser deduction of tax.

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