Sec. 40(a)(iii) of the Income-tax Act, 1961 – Business disallowance – Assessee filed appeal impugning the order of ITAT before High Court. The controversy involved in the said appeal relates to the denial of deduction of expenses - by virtue of provision of Section 40(a)(iii) of the Act -for failure on the part of the Assessee to deduct and deposit TDS within the prescribed time. Tribunal held that salaries paid to ex-patriate employees overseas on which tax was paid in accordance with CBDT Circular dated 685 dated 17/20 June 94 and Circular 686 dated 12.8.94, is not permissible as a deduction in computation of taxable business income in view of the provisions of Section 40 (a)(iii) of the Act, 1961 read with Article 7 of the Indo-UK Double Taxation Avoidance Treaty. High Court allowed the appeal by answering the substaintial question of law in the favour of assessee and against the Revenue. Revenue filed SLP before Supreme Court but withdrew the same. Thus, SLP dismissed as withdrawn – DY. CIT Vs. ANZ GRINDLAYS BANK [2020] 269 TAXMAN 568 (SC).