Article
Disallowance for non-deduction of TDS - Supreme Court interprets ’amount payable’ -
In 2012 the majority view of a Special Bench of the Income Tax Appellate Tribunal had given a conclusion that disallowance under Section 40(a)(ia) can be made only to the amounts of expenditure which are payable as on the date 31st March of every year and it cannot be invoked to disallow expenditure which has been actually paid during the previous year, without deduction of TDS. However, there were differing views of various High Courts. The Supreme Court has now set the controversy to rest by holding that the word ‘payable’ occurring in Section 40(a)(ia) covers cases where the amount is actually paid also
Ratio Decidendi
- Waiver of interest received by amalgamating entity to be treated as income of amalgamated entity – Supreme Court
- Onus on assessee to prove actual use of services – ALP can be determined at Nil – ITAT, Bangalore
- Reimbursement of salary not FTS under India-UK DTAA – Bombay High Court
- Adjustment of tax dues of AE against refund due to assessee can be international transaction – ITAT, Delhi
