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| The Tax Publishers2021 TaxPub(DT) 4615 (Mum-Trib) INCOME TAX ACT, 1961
Section 40(a)(ia)
Where alleged amount paid to Chairman & Managing Director and Executive Director was in the nature of salary, which had been paid in subsequent year and tax had been duly deducted in the year of payment in terms of section 192 treating the same as their salary; no disallowance under section 40(a)(ia) could be made for violation of provisions of section 192 and accordingly, the disallowance made under section 40(a)(ia) was liable to be deleted.
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Business disallowance under section 40(a)(ia) - Non-deduction of tax at source - Payments made to Chairman & Managing Director and Executive Director - Payments in nature of salary
AO made disallowance under section 40(a)(ia) for non-deduction of tax at source on commission paid to Chairman & Managing Director and Executive Director of assessee-company. CIT (A) deleted the said disallowance. Aggrieved, Revenue was in appeal. Held: It was found that the alleged amount paid to Chairman & Managing Director and Executive Director was in the nature of salary, which had been paid in subsequent year and tax had been duly deducted in the year of payment in terms of section 192 treating the same as their salary. Hence, no disallowance under section 40(a)(ia) could be made for violation of provisions of section 192 and accordingly, the disallowance made under section 40(a)(ia) was deleted.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 40(a)(ia)
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