https://www.taxtmi.com/caselaws?id=409264 Section 40(a)(ia) disallows otherwise deductible business expenditure where tax deductible at source is not deducted or paid, but that mechanism does not extend to depreciation on a capitalised software asset. Depreciation is a statutory allowance under Section 32, not a revenue expense claimed in the profit and loss account, so non-deduction of tax at source may trigger withholding consequences but not denial of depreciation. The disallowance of depreciation under Section 40(a)(ia) was therefore held impermissible and relief was allowed to the assessee. en-us Fri, 02 Jul 2021 00:00:00 +0530 Thu, 16 Sep 2021 16:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=409264 Section 40(a)(ia) disallows otherwise deductible business expenditure where tax deductible at source is not deducted or paid, but that mechanism does not extend to depreciation on a capitalised software asset. Depreciation is a statutory allowance under Section 32, not a revenue expense claimed in the profit and loss account, so non-deduction of tax at source may trigger withholding consequences but not denial of depreciation. The disallowance of depreciation under Section 40(a)(ia) was therefore held impermissible and relief was allowed to the assessee. Case-Laws Income Tax Fri, 02 Jul 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=409264