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| The Tax Publishers2020 TaxPub(DT) 0432 (Mum-Trib) INCOME TAX ACT, 1961
Section 40(a)(ia)
Demurrage charges of earlier years on account of non-deduction of tax under section 195, however, impugned demurrage charges related to earlier assessment year, i.e., assessment year 2012-13 and these expenses were never debited to profit and loss account for the assessment year under consideration, i.e., assessment year 2013-14 nor claimed as deduction from total income, in such circumstances there could not be any disallowance under section 40(a)(i).
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Business disallowance under section 40(a)(ia) - Non-deduction of tax at source - Reimbursement of demurrage expenses to non-resident - No deduction claimed by assessee
AO made disallowance under section 40(a)(ia) of demurrage charges of earlier years on account of non-deduction of tax under section 195.Held: Demurrage charges of earlier years on account of non-deduction of tax under section 195, however, impugned demurrage charges related to earlier assessment year, i.e., assessment year 2012-13 and these expenses were never debited to profit and loss account for the assessment year under consideration, i.e., assessment year 2013-14 nor claimed as deduction from total income, in such circumstances there could not be any disallowance under section 40(a)(i).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
INCOME TAX ACT, 1961
Section 195 Section 9(1)(vii)
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