The Tax Publishers2019 TaxPub(DT) 8468 (Kol-Trib)

INCOME TAX ACT, 1961

Section 40(a)(ia)

If there was any short-fall due to any difference of opinion as to taxability of any item or nature of payment falling under various TDS provisions assessee could be declared to be an assessee in default under section 201, but no disallowance could be made by invoking section 40(a)(ia).

Business disallwoance under section 40(a)(ia) - Non-deduction of tax at source - Disallownce in case of short deduction of tax -

AO disallowed certain payment under section 40(a)(ia) on the ground of short deduction of tax.Held: If there was any short-fall due to any difference of opinion as to taxability of any item or nature of payment falling under various TDS provisions assessee could be declared to be an assessee in default under section 201, but no disallowance could be made by invoking section 40(a)(ia).

Followed:Dy. CIT v. S.K. Tekriwal (2013) 361 ITR 432 (Cal) : 2013 TaxPub(DT) 240 (Cal-HC). Overruled:CIT v. PVS Memorial Hospital Ltd. (2015) 380 ITR 284 (Ker) : 2015 TaxPub(DT) 3001 (Ker-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 14A

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT