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2016 (6) TMI 213 - AT - Income TaxDisallowance u/s 40(a)(ia) - non deduction of TDS - Held that:- assessee is a registered trust - Held that:- The undisputed facts of the case are that in the assessment year 2008-09, the assessee was registered under section 10(23C)(iv) of the Act and claimed exemption under the said Act. Similarly, in assessment years 2009-10, 2010-11, since the assessee was registered under section 12AA of the Act, the income was claimed to be exempt under section 11 of the Act. It is also a fact on record that on the impugned payments, the assessee have not deducted tax, as required under the provisions of the Act. Since the income of the assessee is exempt in view of these sections, the income of the assessee is not taxable under the head "income from business or profession", appearing in Chapter-IV of the Income Tax Act. Section 40(a)(ia) of the Act is a part of Chapter-IV for the purposes of computing the income under the head "business income". We are in agreement with the submissions of the assessee and also the findings of the learned CIT (Appeals) that the provisions of section 40(a)(ia) of the Act can be invoked only for the purposes of computing the income under the head "business income". Since the income is not computed under this head, the provisions of section 40(a)(ia) of the Act cannot be invoked. - Decided in favour of assessee
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