9911796707
TMI Blog2015 (2) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the assessee [ 2015 (3) TMI 185 - ITAT MUMBAI] , this issue is decided in favour of the assessee and the disallowance made by the lower authorities under section 40(a)(ia) is hereby ordered to be deleted. Disallowance u/s 40(a)(ia) which has been correctly deleted by the CIT(A) on the basis of certificates furnished under section 197 of the Act by the payee hospitals Disallowance on account of unreconciled receipts - as agitated on behalf of the Revenue that the Ld. CIT(A) deleted the disallowance without properly appreciating the factual and legal matrix of the case - HELD THAT:- A perusal of the impugned order reveals that the Ld. CIT(A), after going through the reconciliation statement, had accepted the contention of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r non-deduction of TDS as per the provisions of section 194J. 4. In appeal, the Ld. CIT(A) restricted the addition to Rs.10,65,669/- and deleted the remaining addition of Rs.84,94,39,847/- on the basis of certificates submitted by the payee hospitals under section 197 of the Act as they being exempt from income tax. The assessee, thus, has agitated the confirmation of addition of the remaining amount of Rs.10,65,669/-. 5. At the outset, the Ld. A.R. of the assessee has submitted that the assessee had not claimed these payments as expenditure, hence there was no question of disallowance of any expenditure. Once an expenditure has not been claimed, no question of disallowance of the same can arise. He has submitted that the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee then the provisions of section 40(a)(ia) is not attracted for non deduction of tax at source in respect of the said payment. Following the decisions of the Tribunal as relied upon by the assessee and discussion above we hold that no disallowance can be made under section 40(a)(ia) in respect of the payment in question. Accordingly the ground raised in assessee's appeal is allowed and ground raised in the revenue's appeal is dismissed. 6. We are in agreement with the above finding of the Tribunal. When there is no claim of expenditure there cannot be any disallowance of expenditure. Respectfully following the decision of the Tribunal in the immediate preceding assessment year in the own case of the assessee, this is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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