Tribunal held that ; If the recipients had paid due taxes on the amount received from the assessee no disallowance can be made . AO was directed to verify whether the recipient has paid the taxes on amount received from the assesse .Followed CIT v. Ansal Land Mark Township Pvt. Ltd. ( 2015) 377 ITR 635 ( Delhi) (HC) . ( AY. 2012-13)
Powerware India P. Ltd. v. ITO (2018) 61 ITR 746 (Ctk) (Trib)
S.40(a)(ia):Amounts not deductible – Deduction at source -Retrospective operation — If the recipients had paid due taxes on the amount received from the assessee no disallowance can be made . AO was directed to verify whether the recipient has paid the taxes on amount received from the assesse [ S. 194A,194C ]