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2013 (2) TMI 372 - AT - Income TaxDisallowance u/s 40(a)(ia) - Assessee is engaged in transport contract - Assessee contended that the provisions of section 40(a)(ia) is restricted to amounts that are payable if they are outstanding as on the last day of the accounting year – Held that:- Following the decision in case of Merilyn Shipping & Transports (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) that the word “payable” used in section 40(a)(ia) is applicable only to expenditure which is payable as on March 31 of every year and cannot be invoked to disallow the amounts which have already been paid during the previous year, without deducting TDS. It is not clear neither from the assessment order nor from the CIT(A)’s order, that the amounts that were payable in the months of January and February, 2009, are paid before the year ending 31/3/2009. What is remaining as payable as on the last day of the accounting year alone calls for disallowance by invoking the provisions of section 40(a)(ia). To decide accordingly appeal Remand back to AO
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