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2015 (2) TMI 547 - AT - Income TaxNon-deduction oF TDS u/s 40(a)(ia) - ECB interest and royalty payment - Held that:- Merely because, accounts are closed on that date and the computation of profit and loss is to be judged with reference to such date, does not mean that whether an amount is payable or not must be ascertained on the strength of the position emerging on March 31. This Tribunal is of the considered opinion that the Commissioner of Income-tax (Appeals) has rightly confirmed the disallowance since the assessee has not admittedly deducted tax at the time of making payment. Coming to the alternative contention of learned counsel for the assessee that it has to be allowed in the year in which the tax was paid, this Tribunal is of the considered opinion that in view of provisos to section 40(a)(ia) and 40(a)(i) the deduction claimed by the assessee has to be allowed in the year in which the tax was actually paid by the assessee. The learned Departmental representative also has no objection to allow the claim of the assessee in the year in which the tax was actually paid by the assessee. In view of the above, the Assessing Officer shall verify the actual payment of tax by the assessee on the expenditure claimed and thereafter allow the claim in the year in which the tax was actually paid. - Decided partly in favour of assessee.
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