TMI Blog2016 (8) TMI 1301X X X X Extracts X X X X X X X X Extracts X X X X ..... r, the decision of the Special Bench of the Tribunal in the case of Merilyn Shipping & Transport (2012 (4) TMI 290 - ITAT VISAKHAPATNAM ), which has been affirmed by the Hon'ble Allahabad High Court in the case of Vector Shipping Services (P) Ltd [2013 (7) TMI 622 - ALLAHABAD HIGH COURT] and also the order of the Hon'ble Apex Court dismissing the Revenue’s appeal against the same, we also hold that if the payments are already made by the end of the relevant financial year, no disallowance shall be made. - ITA No.249/Hyd/2013 - - - Dated:- 26-8-2016 - Smt. P. Madhavi Devi, Judicial Member AND Shri S. Rifaur Rahman, JJ. For assessee Shri P. Raviseshagiri Rao For Revenue Smt. Pallavi Agarwal, DR ORDER Smt. P. Madhavi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable to the case before us. Further, he has also drawn our attention to the returns of income of the recipients filed in the paper book filed before us to demonstrate that the recipients have also offered the income to tax in their hands during the relevant A.Ys. Therefore, according to him, the proviso to section 40(a)(ia) is applicable and the disallowance u/s 40(a)(ia) cannot be made. The learned DR, on the other hand, supported the orders of the authorities below. 4. Having regard to the rival contentions and the material on record, we find that while filing the paper book, the learned Counsel for the assessee has certified that all the relevant documents were filed before the AO and the CIT (A). But we do not find any discussio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the recipients have offered the said income to tax in the relevant A.Y, then no disallowance shall be made in the case of the assessee. Further, the decision of the Special Bench of the Tribunal in the case of Merilyn Shipping Transport (Supra), which has been affirmed by the Hon'ble Allahabad High Court in the case of Vector Shipping Services (P) Ltd and also the order of the Hon'ble Apex Court dismissing the Revenue s appeal against the same, we also hold that if the payments are already made by the end of the relevant financial year, no disallowance shall be made. 5. In the result, assessee s appeal is treated as allowed for statistical purposes. Order pronounced in the Open Court on 26th August, 2016. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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