SHORT DEDUCTION OF TAX DUE TO APPLICATION OF WRONG PROVISION WON'T LEAD TO SEC.40(a)(ia) DISALLOWANCE

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It was held that section 40(a)(ia) did not envisage a situation where there was short deduction/lesser deduction as in case of section 201(1A) of the Act.
Therefore, in case of short/lesser deduction of tax the entire expenditure could not be disallowed whose genuineness was not doubted by the Assessing Officer.

Comments

  1. AnonymousNovember 13, 2014 at 12:45 PM

    agree.can i have sitation of issue?

    ReplyDelete
    Replies
    1. VigneshNovember 13, 2014 at 2:00 PM

      Apollo Tyres Ltd. v. Dy. CIT (2013) 35 taxmann.com 593 (Coch.)

      THREE STAR GRANITES (P.) LTD. V. ACIT (2014) 49 taxmann.com 578 (Cochin - Trib.)

      Delete

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