No Section 40(a)(ia) disallowance if Expense was not claimed

ACIT Vs Parag Fans & Cooling System Pvt. Ltd (ITAT Indore)

Disallowance was made for the alleged non deduction of tax at source on the alleged amount of interest of Rs.25,95,609/-. We find that the assessee has not shown expenditure of Rs.25,95,609/- in its Profit &Loss account. Since no such expenditure has been claimed by the assessee against the revenue for the year and this fact remains undisputed at the end of both the parties, then in such situation the disallowance made u/s 40a(ia) of the Act is uncalled for.<

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