https://www.taxtmi.com/caselaws?id=235296 Disallowance under section 40(a)(ia) was held unwarranted where an assessee on the cash system actually paid the amount in March, deducted tax at source at that time, and deposited it in April within the time permitted by section 139(1). Mere memorandum entries kept for convenience did not amount to an accrual-based booking of liability or payment. The proviso to section 40(a)(ia) was read as a remedial provision intended to make the disallowance rule workable and to avoid hardship where tax had in fact been deducted and paid within the statutory period, and the reference point was treated as the return-filing due date, not the earlier Chapter XVII-B deposit date. en-us Mon, 01 Jul 2013 00:00:00 +0530 Mon, 04 Aug 2025 17:00:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235296 Disallowance under section 40(a)(ia) was held unwarranted where an assessee on the cash system actually paid the amount in March, deducted tax at source at that time, and deposited it in April within the time permitted by section 139(1). Mere memorandum entries kept for convenience did not amount to an accrual-based booking of liability or payment. The proviso to section 40(a)(ia) was read as a remedial provision intended to make the disallowance rule workable and to avoid hardship where tax had in fact been deducted and paid within the statutory period, and the reference point was treated as the return-filing due date, not the earlier Chapter XVII-B deposit date. Case-Laws Income Tax Mon, 01 Jul 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235296