AO made disallowance in respect of certain payments made by assessee on which tax had not been deducted at source. Tribunal deleted said disallowance on ground that payee had reflected said amount as its tax liability in its return. High Court affirmed the order of the Tribunal. Followed CIT v. Rajinder Kumar (2014) 362 ITR 241 (Delhi) (HC), CIT v. Ansal Land Mark Township Pvt Ltd (2015) 377 ITR 635 (Delhi) (HC).
PCIT v. Shivaai Industries (P.) Ltd. (2020) 269 Taxman 54 (Delhi) (HC) Editorial : SLP is granted to the revenue; PCIT v. Shivaai Industries (P.) Ltd. (2020) 269 Taxman 53 (SC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payee reflected the said amount as it tax liability-No disallowance can be made.