Dismissing the appeal of the Revenue the Court held that the Tribunal was justified in holding that the respondent could not have deducted TDS on provisions made in respect of expenses pertaining to the year under consideration is correct. Moreover, it is not disputed that in subsequent years when actual payments were made TDS has been deducted. (ITA No. 647/2017 dt. 29-9-2021)
PCIT v. Rediff.Com India Ltd. (Bom.)(HC)(UR)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Provision for expenses-No disallowance is to be made for failure to deduct tax at source-Tax was deducted when payment was made-Deletion of disallowance is justified. [S. 37(1), 145]