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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.

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Sec. 40(a)(ia) of Income Tax Act, 1961—Business Disallowance —For disallowing expenses from business and profession on the ground that TDS has not been deducted, the amount should be payable and not which has been paid by the end of the year-A.O rightly made the disallowance as provisions 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 and the assessee was required to deduct TDS on the full amount paid or payable during the year under consideration which he failed to do so. - AMIT YADAV V/s ITO - [2020] 185 ITD 353 (ITAT-DELHI)