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TMI Blog2015 (10) TMI 1437X X X X Extracts X X X X X X X X Extracts X X X X ..... 90 - ITAT VISAKHAPATNAM ) wherein it was held that the provisions of section 40(a)(ia) are applicable only to the expenses that are "payable" and outstanding at the end of the close of the year relevant to the assessment year and not to the amount already paid. The same view was taken by the High Court of Allahabad in the case of CIT vs. M/s. Vector Shipping Services (P) Ltd [2013 (7) TMI 622 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent : Shri N Madhavan, IRS, JCIT ORDER Per Chandra Poojari, This appeal by assessee is directed against the order of the Commissioner of Income Tax (Appeals)-I, Chennai, dated 27.10.2014 for the assessment year 2008-2009. 2. The ld. Authorised Representative for assessee raised the following grounds:- 1. The learned Commissioner of Income Tax (Appeals) erred I confirming the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t apply to expenditure which is paid . 3. The facts of the case are that the assessee was engaged in transcription business. The issue adjudicated relates to disallowance u/s.40(a)(ia) for non-deduction of TDS on internet lease line charges to the tune of D10,75,479/-. The assessee incurred lease line expenditure towards the use of internet to Reliance Communication and Bharati Airtel Ltd. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable to the facts of the case and he decided the case against the assessee. Against this, the assessee is in appeal before us. 5. We have heard both the parties and perused the material on record. A similar issue is considered by the Special Bench of the Tribunal (Vizag) in the case of Merilyn Shipping and Transports vs. ACIT (2012) 136 ITD 23 (Visakhapatnam) wherein it was held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer to disallow only that amount which is outstanding at the end of the close of the assessment year. With these observations, we are remitting the issue back to the file of the Assessing Officer for fresh consideration. 7. In the result, the appeal of the assessee in ITA No.3114/Mds/2014 is partly allowed for statistical purposes. Order pronounced on the 19.6.2015. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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