Tribunal held that Pfizer Ltd. had taken into account the sum received from the assessee and has appropriately discharged it tax liability on its returned income. Further, it had also furnished a certificate from a Chartered Account to this effect. Accordingly, the Hon’ble Tribunal following the order of Assessee’s own case for AY 2009-10 and deleted the disallowance made by the AO by holding that the disallowance section 40(a)(ia) is not warranted in view of the second proviso read with the first proviso to section 201(1) inserted vide Finance Act, 2012 and which has been held to be retrospective by the Hon’ble Delhi High Court in CIT v. Ansal Land Mark Township (P.) Ltd, ITA No. 160/2015 dt. 26-8-2015. (AY. 2006-07)
DCIT v. Pfizer Products (India) Pvt. Ltd. (2021) 198 DTR 273 / 210 TTJ 908 (Mum.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contractor-Disallowance section is not warranted where the payee furnishes the return of income taking into account the sum(s) received from the payer, tax due on the return income has been paid and certificate of a Chartered Accountant to that effect has been furnished. [S. 194C]