DISALLOWANCE U/S 40a(ia)

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Section 40 Start from ' Notwithstanding anything to the contrary in section 30 to 38, that means the expenses which are convred under the purview of section 30 to 38 would be disallowed u/s 40a(ia). that means if  incurred expenditure is part of trading account or manufacturing account liable to deduct tax and tax has not been deducted on that amount, would cover the ambit of section 40a(ia) or not .  if yes why? and if not Why?.

Further i would like to ask that 28(i) state that the profit and gains of any business or profession , what is that meaning, it means gross profit?

kindly reply as early as possibe, if relevant judgement is there, it would be most appropriate.

thanks.

AI Summary

Understanding Section 40a(ia): Tax Deduction Non-Compliance Doesn't Disallow All Expenses Under Sections 30-38. A user inquired about the implications of Section 40a(ia) of the Income Tax Act, questioning whether expenses listed under sections 30 to 38 would be disallowed if tax is not deducted. The response clarified that the phrase 'notwithstanding anything to the contrary' indicates that Section 40a(ia) applies irrespective of other provisions, but it does not mean all expenses specified in sections 30 to 38 are disallowed if tax is not deducted. The act should be interpreted harmoniously, considering specific disallowances outlined in Section 40(a).