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2008 (2) TMI 424 - HC - Income TaxConsequences of failure to deduct TDS u/s 194C – application of section 40(a)(ia) – held that - . Section 4 of the Act provides that for the income of the year concerned, income-tax shall be charged in accordance with the provisions enacted by the legislature. The income is defined under Section 2(24) of the Act. - A sum paid for advertisement towards advancement of the business is liable to be deducted from computation of the total income strictly in accordance with the provisions of the Act and not otherwise - he was liable to deduct tax at source by virtue of Section 194C of the Act failing which Section 40 (a)(ia) provides that such payment shall not be allowed to be deducted from computation of total income and shall be treated to be the income of the assessee. Once a deduction of a particular amount is not allowable under the Act, it is liable to be taxed and merely because some other person may also be liable to tax after receiving the said amount in one or the other manner, it cannot be said that former assessee is entitled for exemption and cannot be taxed.
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