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Subex Ltd v. DCIT ( 2023) The Chamber’s Journal- March P. 119 ( Karn )( HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source – TDS was deducted on provision – Provision was reversed in next year – Parties are not identified – Addition for failure to deduct tax was held to be not justified [ S. 194J ]

Allowing the appeal of the assessee the Court held that provisions made at the end of the accounting year were reversed at the beginning of the next year and no payees were identified nor the exact amount payable was identified. Accordingly, the addition u/s 40(a)(ia) for non-deduction of  TDS on year-ended provision was set aside.     (ITA .No. 787 of 2017 dt. 22-12 -2022 )