Dismissing the appeal of the revenue the Court held that;reimbursement of lease rent charges , not liable to deduct tax at source. Similarly provision for contingent liability for which bills were not received during year under consideration and TDS was deducted as and when final bills were received .No disallowance can be made . (AY. 2009-10)
PCIT v. Sanghi Infrastructure Ltd. (2018) 257 Taxman 371 (Guj.)(HC)
S. 40(a)(ia): Amounts not deductible – Deduction at source -Reimbursement of lease rent charges – Not liable to deduct tax at source -Provision for contingent liability for which bills were not received during year under consideration and TDS was deducted as and when final bills were received – No disallowance can be made .[ S.194I ,