Assessee-company made a provision for commission and later, paid said commission to its Chairman and Managing Director (CMD) Assessing Officer held that said payment was to be covered under section 194H and as assessee failed to deduct TDS at time of making provision, same was to be disallowed under section 40(a)(ia) of the Act . CIT(A) deleted the addition which is affirmed by the Tribunal . On appeal the Court held that\u00a0\u00a0 Chairman and managing Director \u00a0was full time employee and said commission paid was nothing but salary . Commission paid was shown as part of his salary in Form-16 for relevant assessment year and was included in total salary paid .Accordingly \u00a0section 192 would be applicable where TDS was required to be paid only at time of payment and no disallowance could be made under section 40(a)(ia) of the Act\u00a0 Followed CIT v. Nagri Mills Co Ltd ( 1958) 33 ITR 681 ( Bom) ( HC) .\u00a0 ( AY. 2010 -11 )<\/p>\n
\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S. 40(a)(ia): Amounts not deductible – Deduction at source \u2013 Commission paid to Chairman and manging director \u2013 Part of salary provision of section 192 is applicable and not section 194H- TDS is deductible at the time of payment and not when the provision was made – No disallowance can be made . [ S. 192 , 194H , Form No 16 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-27009","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-71D","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=27009"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27009\/revisions"}],"predecessor-version":[{"id":30565,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27009\/revisions\/30565"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=27009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=27009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}