Held that the assessee was constantly following the cash system. In the preceding assessment years, no additions were made except in assessment year 2011-12 which was deleted by the Commissioner (Appeals). Thus, the Department had been continuously taking the stand that the tax deducted at source payables outstanding were proper. The assessee had paid the amount within the due date prescribed by the Act. Thus, the disallowance was to be reversed. Followed, Deloitte Haskins and Sells v. ACIT (I. T. A. No. 3715/Delhi/2017, dated January 15, 2021). (AY. 2012-13, 2014-15)
Walker Chandilok and Co. LLP v. ACIT (2021) 91 ITR 19 (SN) (Delhi)(Trib.)
S. 37(1) : Business expenditure-Method of accounting-Cash system-Tax Deduction at source payables-Paid on due date-Disallowance is not justified. [S. 145]