The Tax Publishers2021 TaxPub(DT) 0835 (Ind-Trib)

INCOME TAX ACT, 1961

Section 40(a)(ia)

Expenditure not claimed as deduction could not be subjected to disallowance under section 40(a)(ia).

Business disallowance under section 40(a)(ia) - Non-deduction of tax at source - Concerned expenditure not debited in profit and loss account -

AO made disallowance under section 40(a)(ia) of interest payment for want of TDS. Assessee's case was that it had not claimed any expenditure towards payment of interest. Held: Assessee had not shown interest expenditure in its profit and loss account and since no such expenditure was claimed by the assessee against revenue for the year, then in such situation disallowance under section 40a(ia) was uncalled for.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13 & 2014-15


INCOME TAX ACT, 1961

Section 37(1)

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