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2021 (10) TMI 176 - HC - Income TaxDisallowance u/s 40a(ia) - non deduction of TDS on provisions made in respect of expenses pertaining to the year under consideration - CIT(A) concluded that the respondent’s claim for provision of expenses was allowable as deduction since provision was pertaining to the liability crystallized during the year - As per ITAT when payments were made by respondent to third parties, TDS has been deducted has not been disputed by the revenue and it is nobody’s case that any payment has been made subsequently without deduction of tax source and even excess amount of provisions has been written back and hence there is no loss to revenue, thus reused to interfere - HELD THAT:- CIT(A) was correct in deleting the disallowance made under Section 40a(ia) of the Act and the view of CIT (A) that respondent could not have deducted TDS on provisions made in respect of expenses pertaining to the year under consideration is correct. Moreover, it is not disputed that in subsequent years when actual payments were made TDS has been deducted. Tribunal has not committed any perversity or applied incorrect principles to the given facts - no substantial question of law. - Decided against revenue.
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