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2016 (5) TMI 328 - AT - Income TaxDisallowance u/s 40(a)(ia) - assessee in default under section 201 - suomoto disallowance by assessee - Held that:- In the case of Pfizer Ltd. Vs. ITO (2010 (6) TMI 433 - Bombay High Court) the assessee had suomoto disallowed the entire amount of the provision created under sections 40(a)(i)/40(a)(ia), on account of non-deduction of tax. In these circumstances, because the assessee had not claimed any such expenditure in the relevant year, assessee cannot be subjected to the provisions of TDS under section 201(1). The case of the appellant is identical on facts to the case of Pfizer Ltd. Hence, the appellant cannot be treated to be in default under section 201 for non-deduction of tax at source that the amount has been suo moto disallowed by the appellant under section 40(a)(ia) of the Act in the return of income. The demand raised by the AO is therefore not justified and the same is hereby deleted. - Decided in favour of assessee.
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