Section 40(a)(ia) can’t be invoked in absence of amount claimed as expenditure

CIT Vs M/s Dedicated Healthcare Services (TPA) India Pvt. (Bombay High Court) Conclusion: Section 40(a)(ia) can be applied only when amount sought to be disallowed has been claimed as an expenditure/deduction. In absence of the amount having been claimed as expenditure while determining the income, dis allowance would not be attracted. Held:In the instant case, assessee carrying on business as a third party administrator made payments to various hospitals without deducting tax under section 194J. AO invoked section 40(a)(ia) for making disallowance. It was held the pre-condition for applicatio...