[aaykarbhavan] Sec. 40(a)(ia) disallowance to be invoked only for sum outstanding at year end; Victor Shipping's case followed

Sec. 40(a)(ia) disallowance to be invoked only for sum outstanding at year end; Victor Shipping's case followed

October 4, 2014[2014] 48 taxmann.com 402 (Bangalore - Trib.)/[2014] 150 ITD 323 (Bangalore - Trib.)

IT : Proviso inserted by Finance Act, 2012 in section 40(a)(ia) is declaratory and curative in nature and therefore, it should be given retrospective effect from 1-4-2005

IT : In view of order passed by Allahabad High Court in case of CIT v. Vector Shipping Services (P.) Ltd. 218 Taxman 93/38 taxmann.com 77, it was to be concluded that provisions of section 40(a)(ia) were applicable only to amount of expenditure which were payable as on 31st March, of every year and it could not be invoked to disallow expenses which had been actually paid during previous year without deduction of TDS

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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