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2011 (12) TMI 422 - AT - Income TaxDisallowance under section 40(a)(ia) - TDS u/s 194C - Held that:- Disallowance under section 40(a)(ia) only when the provisions of section 194C are applied to consider the hardship faced by the assessees has been totally ignored by the Assessing Officer and the learned Commissioner of Income-tax (Appeals) in so far as it was never the case of the assessee to claim expenditure of ₹ 33,898 being disallowed by the Assessing Officer merely because the amount paid by the assessee was on May 12, 2008. We are inclined to find the contention of learned counsel for the assessee appropriate for raising the alternate submissions in so far as learned counsel for the assessee has tried to analyse the interpretation of various decisions of the Tribunal and the High Courts relating to the issue regarding the due date of payment whether has to be considered in accordance with the amended provisions with effect from April 1, 2010 and whether the deduction of tax on payments without having entered into contracts have been subjected to TDS which has to be considered first for proceeding for disallowance under section 40(a)(ia). The disallowance under section 40(a)(ia) in the present case, is not justified and as such we direct the deletion of the said disallowance by allowing the appeal of the assessee.
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