The Assessing Officer made a disallowance under section\u00a040(a)(ia)\u00a0of the\u00a0Income-tax Act, 1961\u00a0on the ground that the assessee had made a short deduction of tax on the remuneration paid to its director in violation of section\u00a0197(1)\u00a0 of the Act.. Both the Commissioner (Appeals) and the Tribunal gave concurrent findings that the higher salary paid to the assessee\u2019s director was accepted as remuneration by the Assessing Officer during the scrutiny assessment in the subsequent assessment year and that the Assessing officer did not bring any evidence or material for making disallowance under section\u00a040A(2)(b)\u00a0and deleted the disallowance under section\u00a040(a)(ia).Dismissing the appeal of the Revenue the Court held that\u00a0 where there was short deduction of tax at source, disallowance could not be made under section\u00a040(a)(ia)\u00a0and the correct course of action would have been to invoke the provisions of section\u00a0201 of the Act. (AY.2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Remuneration to director-Shortfall in tax deduction at source-No disallowance can be made-Proper course of action is invoke section 201 of the Act. [S. 37(1), 40A(2)(b), 197(1), 201] <\/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-30947","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-839","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30947","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=30947"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30947\/revisions"}],"predecessor-version":[{"id":33431,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30947\/revisions\/33431"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=30947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=30947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=30947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}