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Grievance of the assessee is that the CIT(A) erred in upholding the disallowance of Rs. 18.55 lacs made by the AO u/s. 40 (a) (ia) of the Act. Assessee has made payments to M/s. Rising overseas amounting to Rs. 61.85 lacs without deducting tax at source provision of section 40(a)(ia) would cover not only to the amounts which are payable as on 31st March of a particular year but also which are payable at any time during the year. Therefore, respectfully following the discussions made, analysis done and the judgment passed by Hon’ble ITAT, Lucknow Bench-B in thecaseof Ama Medical & Diagnostic Centre (supra) , it is held that the assessee was required to deduct TDS on the full amount paid or payable during the year under consideration. Since, the same has not been done, which is an admitted fact by the appellant during the appellate proceedings, therefore, in my considered opinion, the A.O. has rightly made the disallowance of Rs. 18,55,500/- u/s 40(a)(ia) of the IT Act. Accordingly, the action of the A.O. is upheld.

Shanti Prime Publication Pvt. Ltd.

Sec. 40(a)(ia) of Income Tax Act, 1961—Business  Disallowance —Assessee preferred an appeal against the order of the CIT(A) Dated 20.11.2018 pertaining to A.Y. 2015-16.  During the course of the scrutiny assessment proceedings the AO noticed that the assessee has made payments to M/s. Rising overseas amounting to Rs. 61.85 lacs without deducting tax at source. The assessee was asked to explain why disallowance should not be made u/s.40(a)(ia) of the Act on payment of shipment expenses of Rs. 61.85 lacs. The assessee filed a detailed reply objecting for the proposed disallowance. The reply of the assessee did not find any favour of the AO to proceeded by dismissing 30% of expenses paid Rs. 61.85 lacs and made addition  of Rs. 18,55,500/-.
Hon’ble ITAT held that the assessee was required to deduct TDS on the full amount paid or payable during the year under consideration. Since, the same has not been done, which is an admitted fact by the appellant during the appellate proceedings, therefore, in the considered opinion, the A.O. has rightly made the disallowance of Rs. 18,55,500/- u/s 40(a)(ia) of the IT Act. Accordingly, the action of the A.O. was upheld, therefore, the appeal filed by the assessee was dismissed.---  AMIT YADAV vs. ITO[2020] 23 ITCD Online 36 (DEL)