Despite TDS Default, No s. 40(a)(ia) Disallowance For Amounts Paid During Year: Special Bench

---------- Forwarded message ----------

From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Thu, Apr 12, 2012 at 9:56 AM
Subject: Message from EGroup of SolapurCAs Despite TDS Default, No s. 40(a)(ia) Disallowance For Amounts Paid During Year: Special Bench
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

M/s. Merilyn Shipping & Transports vs. ACIT (ITAT Visakhapatnam Special Bench)

S. 40(a)(ia) TDS Disallowance applies only to amounts "payable" as at 31st March and not to amounts already "paid" during the year

 

The assessee incurred brokerage expenses of Rs.38.75 lakhs and commission of Rs.2.43 lakhs without deducting TDS. Of this only Rs. 1.78 lakhs was payable and the rest was paid. The AO disallowed the entire expenditure u/s 40(a)(ia). Before the CIT (A), it was argued that disallowance u/s 40(a)(ia) could be made only of the amount "payable" and not of that which had already been "paid" though it was rejected. On appeal to the Tribunal, the matter was referred to the Special Bench. HELD by the Special Bench:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

---------------------

Latest:

CIT vs. United Breweries Ltd (Karnataka High Court) Commission to CMD for personal guarantee may be treated as "ploy to divert funds"