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TMI Blog2015 (10) TMI 1742X X X X Extracts X X X X X X X X Extracts X X X X ..... n the last day of the relevant accounting period, the provision of Section 40(a)(ia) of the Act shall not apply - Decided in favour of assessee. Disallowance of expenditure u/s 40(a)(ia) - expenditure incurred on which no TDS was required to be deducted at source - Held that:- In the facts of the case, we restore this issue to the file of the Assessing Officer with the direction to decide the issue de novo after verification that whether the TDS provisions were applicable on the expenditure after allowing reasonable opportunity of hearing to the assessee - Decided in favour of assessee for statistical purposes. Disallowance of expenditure u/s 40(a)(ia) - expenditure on which TDS was already deducted at source - Held that:- In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es only to amounts payable as of 31st March and not to amounts already paid during the year. 3. The assessee has also filed the revised additional grounds of appeal, which are as under:- 1. That learned AO erred in disallowing expenditure u/s 40(a)(ia) of the Act in respect of expenditure of ₹ 5,61,264 already Paid during the year as Section 40(a)(ia) disallowance applies only to amounts payable as of 31st March and not to amounts already paid during the year. 2. That learned CIT(A) erred in disallowing expenditure u/s 40(a)(ia) of the Act in respect of expenditure of ₹ 4,06,950 incurred on which no TDS was required to be deducted at source. 3. That learned CIT(A) erred in disallowing expenditure u/s 40(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. We have considered the rival submissions and have perused the order of the Assessing Officer and the learned CIT(A). We find that the issue is now settled that the provision of Section 40(a)(ia) of the Act shall apply only to the amount payable as on the last day of the relevant accounting year. Accordingly, the Assessing Officer is directed to verify the amount in question and, if the amount was already paid during the year and no expenditure remained payable as on the last day of the relevant accounting period, the provision of Section 40(a)(ia) of the Act shall not apply. We direct accordingly. 9. The revised additional ground of appeal No.2 of the assessee is as under:- That learned CIT(A) erred in disallowing expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e compilation filed before the Tribunal. Learned DR has relied on the order of the Assessing Officer. 14. We have considered the rival submissions. In view of the evidence filed by the assessee in the compilation before us to prove that the assessee has made the TDS on the expenditure of ₹ 59,438/-, we decide the issue in favour of the assessee and direct that no disallowance of ₹ 59,438/- be made under Section 40(a)(ia) of the Act. Accordingly, the revised additional ground No.3 of the assessee is allowed. 15. The revised additional ground of appeal No.4 of the assessee is as under:- That without prejudice to above grounds, learned AO erred in making disallowing of ₹ 13,72,543 u/s 40(a)(ia) of the Act without ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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