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2014 (9) TMI 1016 - AT - Income TaxDisallowance under section 40(a)(ia) - non deduction of TDS on Royalty and Commission - Held that:- There is no default on the part of the assessee in respect of deduction of tax at source. There is sufficient evidence regarding the payment shown as income by the respective parties (payee) in their return filed and so the ITO failed to appreciate that tax cannot be collected once again by the Department if it is already paid by the payee. No expenditure was outstanding or payable as on Balance Sheet date, i.e. 31.03.2009 for which TDS has to be collected and hence section 40(a)(ia) cannot be invoked in the light of the order of the ITAT Special Bench in the case of Merilyn Shipping & Transports.[2012 (4) TMI 290 - ITAT VISAKHAPATNAM]. Identical issue was considered by the ITAT “A” Bench in the case of Amit Naresh Sinha (2014 (9) TMI 1000 - ITAT PANAJI – wherein one of us is a party) wherein the Bench had taken the view that if an amount is paid, disallowance under section 40(a)(ia) is not permissible - Decided in favour of assessee.
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