Court finds that it has undertaken a
thorough analysis of the second proviso to Section 40 (a)(ia) of the Act
and also sought ... lapse per se is separately
provided for in Section 271 C, and, section 40(a)(ia) does not
add to the same. The provisions
section (a) of Section 40 . This provision
reads as under:
“S. 40 - Amounts not deductible:
Notwithstanding anything to the contrary in Sections ... a person to a contractor shall not be treated as deductible expenditure.
When read in this context, it is clear that Section 40(a)(ia
punish the assessee is further reflected
from a bare reading of the provisions of Section 40(a)(ia) of the
IT Act. It only results ... a)(ia) of IT Act.
18) With a view to mitigate this hardship, Section 40(a)(ia)
was amended by the Finance
Section(1) of Section
139 of the Act.
18. In
such context, therefore, the question arises whether under Section
40(a)(ia ... payment to
a particular payee at a specified time or occasion or any specified
manner. In the context of section 40(a)(ia) , the word
hereinafter referred to as the CIT(A)] in confirming the
disallowance of Rs.11950669/- under section 40(a)(ia) on account of non
deduction ... provisions
of section 194J of the Act. The disallowance has been made accordingly under
section 40(a)(ia) of the Act. Admittedly, the assessee hospital
exempted, such a safety valve measure not being available in respect of a resident recipient, Section 40(a)(ia) is unreasonable and unjustifiable ... Section 40(a)(i) and 40(a)(ia) , the only difference is while the former relates to a non-resident, the later concerns a resident
assessment, accordingly, as under:-
“Therefore, considering the provisions of Section 194C ,
Section 40(a)(ia) and Board’s Circular No. 715, dated
08.8.1995, the payment ... provisions of Section 194C of the Act, the CIT(A) held that
in view of the mandatory provisions of Section 40(a)(ia
find that
Section 40(a)(ia) is invoked in large number of cases.
27. One important consideration in construing a machinery section
is that ... clause A of proviso to unamended
section refers to time specified in Section
139(1) of the Act. The amended section
40(a)(ia) expands
Section 194A is contained in Section 40 of the Act.
As per this Section, notwithstanding anything to the
contrary contained in Sections ... Section 194A . It was in such circumstances that the
interest paid by them to the firms was disallowed as
provided under Section 40(a)(ia
Choudhary
on account of non-TDS as required u/s 194A . The section
40(a)(ia) can be invoked where the amount of interest
remains ... Ward- 3(2), Jaipur
(a) Cash credits Rs. 19,50,000/-
(b) Disallowance of interest u/s 40(a)(ia) Rs.
52,650/-
© Disallowance
