https://www.taxtmi.com/caselaws?id=418942 Disallowance under section 40(a)(ia) was held unsustainable where the payee had already included the corresponding interest or finance charges in its return and paid tax on that income. The Chartered Accountant's certificate was accepted as evidence that the tax due on the payment had been discharged by the recipient, so the second proviso to section 40(a)(ia) applied and the amount could not be brought to tax by way of disallowance. The payer was therefore not to be treated as an assessee-in-default for recovery purposes, and the addition was deleted in favour of the assessee. en-us Mon, 21 Feb 2022 00:00:00 +0530 Mon, 28 Feb 2022 08:33:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418942 Disallowance under section 40(a)(ia) was held unsustainable where the payee had already included the corresponding interest or finance charges in its return and paid tax on that income. The Chartered Accountant's certificate was accepted as evidence that the tax due on the payment had been discharged by the recipient, so the second proviso to section 40(a)(ia) applied and the amount could not be brought to tax by way of disallowance. The payer was therefore not to be treated as an assessee-in-default for recovery purposes, and the addition was deleted in favour of the assessee. Case-Laws Income Tax Mon, 21 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418942