TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the disallowance made under section 40(a)(ia) of the Income-tax Act, 1961 for non-deduction of tax at source under section 195 was sustainable where the impugned payment to the overseas associate enterprise was recorded only by journal entry.
Analysis: The assessee's books reflected the relevant income and expenditure for the intervening period through journal entries pursuant to the scheme of arrangement. On the facts found, the impugned amount credited to the overseas entity was held to be merely an accounting entry and not an actual payment attracting deduction of tax at source under section 195. Since the foundation for invoking section 40(a)(ia) was absent, the disallowance could not be sustained.
Conclusion: The disallowance under section 40(a)(ia) was deleted and the issue was decided in favour of the assessee.
TaxTMI 
