When payee has offered the alleged amount as income in their return of income and paid the required tax thereon, the assessee should not be treated as assessee in default and no disallowance u/s. 40(a)(ia) is required. Matter remanded to the CIT(A) to consider and pass a speaking order after giving the assessee proper opportunity of being heard. (AY. 2011-12)
Campbell Shipping (P) Ltd. v. ITO (2018) 192 TTJ 24 (Mum.)(UO)(Trib.)
S. 40(a)(ia): Amounts not deductible – Deduction at source -Payee has offered income in their return-No disallowance can be made -Matter remanded to CIT(A) to pass a speaking order [ S.194J ]