| |
| The Tax Publishers2021 TaxPub(DT) 1102 (Mum-Trib) INCOME TAX ACT, 1961
Section 40(a)(ia)
Second proviso of section 40(a)(ia) of the Act read with section 201(1) as inserted by the Finance Act, 2012, dated 1-4-2013 allows the claim of non-deduction of TDS where payee has filed the return of income and offered sum received from the assessee to tax. The said amendment was effected retrospectively with effect from assessment year 2005-06. Accordingly, issue was restored to AO for making necessary verification to the effect that payee had paid tax or not.
|
Business disallowance under section 40(a)(ia) - Non-deduction of tax at source - Payment of advertisement expenditure without TDS - Assessee pleading payee to have paid taxes
Assessee claimed deduction of advertisement expenditure paid by it. AO disallowed deduction for want of TDS. Assessee pleaded that payee had filed the return and offered sum received from the assessee to tax and therefore, no disallowance was called for, in view of second proviso to section 40(a)(ia). Held: Second proviso of section 40(a)(ia) of the Act read with section 201(1) as inserted by the Finance Act, 2012, dated 1-4-2013 allows the claim of non-deduction of TDS where payee has filed the return of income and offered sum received from the assessee to tax. The said amendment was effected retrospectively with effect from assessment year 2005-06. Accordingly, issue was restored to AO for making necessary verification to the effect that payee had paid tax or not. Accordingly, claim of assessee would be liable to be allowed.
Relied:CIT v. Ansal Land Mark Township (P) Ltd. ((2015) 61 Taxmann.com 45 (Del-HC) : 2015 TaxPub(DT) 3482 (Del-HC) and Hindustan Coca-Cola Beverage v. CIT, dated 16-8-2007 : (2007) 293 ITR 226 (SC) : 2007 TaxPub(DT) 1452 (SC)
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 68
 SUBSCRIBE FOR FULL CONTENT
|