The AO held that the assessee had not deducted tax at source and had made a short deduction of tax. \u00a0Accordingly, he disallowed the sum under section\u00a040(a)(ia)\u00a0of the Act. \u00a0The CIT(A) confirmed \u00a0the order of the AO. \u00a0On appeal Tribunal held that according to the special audit report, admittedly, the assessee had not deducted tax at source for the payments made. \u00a0Considering the amendments to section\u00a040(a)(ia), the assessee had to prove that the recipient had declared the income in its gross income. \u00a0Since the Assessing Officer had not initiated proceedings under S. 201(1), the assessee had not submitted any documents. Hence, the Assessing Officer was directed to delete the addition made under S. \u00a040(a)(ia)\u00a0and to calculate the interest under S.\u00a0201(1A)\u00a0for the period of default. \u00a0(AY. \u00a02007-08, 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40(a)(ia) : Amounts not deductible-Deduction at source\u2013Burden is on assessee to prove recipient declared income in its gross income-Interest to be calculated for the period of default. [S. 201(1), 201(IA)]<\/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":[1],"tags":[],"class_list":["post-8573","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2eh","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8573","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=8573"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8573\/revisions"}],"predecessor-version":[{"id":8574,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8573\/revisions\/8574"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}