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2017 (12) TMI 744 - ITAT COCHINDisallowance of expenditure u/s 40(a)(ia) for failure to deduct tax at source - payments outstanding at the end of the year - Held that:- We find that the issue is squarely covered in favour of the Revenue by the decision of the jurisdictional High Court in the case of Thomas George Muthoot v. CIT [2015 (7) TMI 810 - KERALA HIGH COURT] wherein it was observed that whether disallowance u/s 40(a)(ia) can be made only in respect of payments outstanding at the end of the year has held that the language of section 40(a)(ia) does not warrant any interference that it gets attracted only where the amount remains payable on the last date of the financial year. The Hon’ble Supreme Court in the case of Palam Gas Services v. CIT [2017 (5) TMI 242 - SUPREME COURT] held that word payable occuring in section 40(a)(ia) not only covers cases where amount is yet to be paid but also those cases where amount has actually been paid. Therefore, we are of the view that there is no merit in the arguments of the assessee that, no disallowance u/s 40(a)(ia), if any, remain payable at the end of the year. The CIT(A) by following the decision of the jurisdictional High Court confirmed the additions made by the A.O. We do not find any error in the order of the CIT(A), hence we are inclined to upheld the finding of the CIT(A) and reject the ground raised by the assessee.
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