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2015 (4) TMI 616 - AT - Income TaxDisallowance u/s 40(a)(ia) - Non deduction of TDS - amount was not payable at the end of year - Held that:- orders of the Calcutta High Court [2013 (5) TMI 510 - CALCUTTA HIGH COURT] and the Gujarat High Court [2013 (5) TMI 457 - GUJARAT HIGH COURT] are against the assessee. In such circumstances, the rule of Judicial Precedence demands that the view favourable to the assessee must be adopted, as held by the Hon’ble Supreme Court in the case of CIT vs. Vegeta ble Products Ltd., [1973 (1) TMI 1 - SUPREME Court]. Following the fundamental rule declared by the Hon’ble Supreme Court, we have to follow the judgment of the Hon’ble Allahabad High Court, which is in favour of the assessee. Accordingly, we hold that the disallowance under section 40(a)(ia) applies only to those amounts ‘payable’ and not to those amounts ‘paid’. Accordingly, we uphold the order of the Commissioner of Income- tax(Appeals) in the present case. The appeal filed by the Revenue is liable to be dismissed. - Decided against Revenue.
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