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2023 (2) TMI 222 - AT - Income TaxTDS u/s 194H OR 192 - Disallowance u/s 40(a)(i) - commission expenses - assessee contended that the commission expenses are in the nature of Salary paid to the directors and hence TDS provisions of sec. 194H of the Act will not apply to these payments - HELD THAT:- As relying INDOFIL INDUSTRIES LIMITED [2021 (12) TMI 830 - BOMBAY HIGH COURT] we hold that the assessee is liable to deduct tax at source in respect of commission expenses payable to the whole time directors u/s 192 only, as the same shall form part of their salary payment only. CIT(A) has given a finding that the assessee has deducted tax at source on the commission expenses at the time of making payment in the succeeding year. Tribunal in the earlier years has specifically held that the TDS is liable to be deducted u/s 192 only at the time of making payment and this view has since been upheld by the High Court. Accordingly, the disallowance made u/s 40(a)(ia) of the Act in all the three years in respect of commission expenses is liable to be deleted. We order accordingly.
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