Calcutta High Court approving ITAT order in S.K.TEKRIWAL case section 40(a)(ia) dont apply to Short TDS (no disallowance of expense if instead of 194I ; 194C applied)

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From: CA Santosh S. Samdadiya <ca.samsans@gmail.com>
Date: Wed, Dec 12, 2012 at 11:07 AM

The High Court at Calcutta held :

We are of the view that the conditions laid down u/s.40(a)(ia) of the Act for making addition is that tax is deductible at source and such tax has not been deducted. If both the conditions are satisfied then such payment can be disallowed u/s. 40(a)(ia) of the Act but where tax is deducted by the assessee, even under bonafide wrong impression, under wrong provisions of TDS, the provisions of section 40(a)(ia) of the Act cannot be invoked.

 

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-With Regards,