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View of the respected members regarding the applicability of section 40(a)(ia) in case tax is not deducted in making payments of direct costs being contractual payments. Direct costs being claimed under section 28 and section 40(a)(ia) overriding only the provision under section 30 to 43.

Any issue coming in the notice of tax auditor can be reported in the tax audit report. the auditor may qualify the report for his observation but there is no question of challanging the report of company auditor or in any way interfere with the report of company auditor as a tax auditor is not empowered with any right to interfere or judge the audit reports of other auditors. However if there are any serious issues that can be reported to the management of the company or ICAI who in turn can take corrective actions

AT & T Communication Service India (P) Ltd u/s (2010) 42DTR (Del) (Trib) 22. It was held that merely because certain claim has been disallowed by invoking the deeming provisions contained in 40(a)(ia), it cannot be said that the assessee's claim of deduction was false.

Supreme Court in the case of CIT Vs Reliance Pertoproducts (P) Ltd (2010) 230 CTR (SC) 320, in which it is held that in order to attract the provisions of sec 271(1)(c), there has to be concealment of income or furnishing of inaccurate particulars of his income by the assessee. Merely an incorrect claim in law cannot tantamount to furnishing of inaccurate particulars. Merely because the assessee claimed deduction which has not been accepted by the revenue, penalty u/s 271(1)(c) is not attracted.

Section 44AD is business based but 44AB is assessee based so if total turnover exceeds 60 lakhs the provisions of 44AB would attract and not 44AD

TDS provisions are not attracted on sale of eatables at canteen.