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2012 (12) TMI 527 - AT - Income TaxDisallowance of expenses on which assessee failed to deduct on TDS - When the provision of Section 40(a)ia)is attracted on the expenses which are paid or payable without deducting TDS as on balance sheet date - Held that:- Provisions of section 40(a)(ia), provided in non-deduction of amount which remains payable to a resident in respect of fees for technical services, commission etc.; that it is not applicable where expenditure is paid as decided by Special Bench of the ITAT in Merilyn Shipping & Transport (2012 (4) TMI 290 - ITAT VISAKHAPATNAM). The expression implied in section 40(a)(ia) of the Act, is “payable” and not “paid”. In the present case, the commission involved undisputedly stands paid. Therefore expression “payable” has been used which suggests that disallowance would be made of those expenses which are payable on 31st of March of every Year. Hence disallowance in the case of the assessee is not sustainable. Appeal decided in favour of assessee.
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