AO disallowed commission payment made by assessee for non-deduction of TDS thereon. CIT (A) deleted disallowance on ground that said amount was shown as paid in balance sheet. Tribunal held that disallowance under S.  40(a)(ia) is applicable not only on payable amount but also on paid amount and under both circumstances TDS should be deducted. However if payee had accounted for commission as his income and had shown it in his return of income and also paid tax thereon, then no disallowance could be made in terms of second proviso to S. 40(a)(ia) read with first proviso to S. 201 of the Act. Matter remanded. (AY. 2010-11)