CA Atihash Agarwal (CHARTERED ACCOUNTANT) (187 Points)
23 January 2012CONSIDER THE FOLL CASE:
A COMPANY PAID Rs 3 LACS TO ITS DIRECTOR AS REMUNERATION WITHOUT DEDUCTING TDS.
HOWEVER THE DIRECTOR HAD INFORMED THE COMPANY ABOUT HIS ADVANCE TAX CHALLANS OF Rs 15000/- EACH OF SEP, DEC AND MARCH.
THE AO WANTS TO DISALLOW THE EXPENSES OF 3LACS U/S 40(A)(IA)??
WHETHER HE CAN DO SO??
ALSO IS THERE ANY REMEBDY POSSIBLE IN THIS CASE.
ALSO QUOTE ANY CASE LAW IF APPLICABLE.
T.E.VEERA RAGHAVAN
(CA)
(48 Points)
Replied 10 February 2012
sec. 40a(ia) does not cover TDS liabilty u/s 192. so the AO cannot disallow the remuneration paid to the director even though the company had not deducted TDS for the remuneration.
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