https://www.taxtmi.com/caselaws?id=753664 ITAT Delhi dismissed the assessee's challenge to disallowances under sections 40(a)(ia) and 43B for provisions made towards unfinished work under the Percentage of Completion Method (POCM). The tribunal held that when 100% project revenue is recognized under POCM, corresponding expenditures must account for TDS deduction rather than making provisions. The matter was remanded to CIT(A) for consideration of subsequent TDS payments and deposits. However, the tribunal allowed the appeal regarding section 14A disallowance, ruling that no disallowance can be made in the absence of exempt income during the relevant year. en-us Wed, 05 Jun 2024 00:00:00 +0530 Wed, 18 Dec 2024 16:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753664 ITAT Delhi dismissed the assessee's challenge to disallowances under sections 40(a)(ia) and 43B for provisions made towards unfinished work under the Percentage of Completion Method (POCM). The tribunal held that when 100% project revenue is recognized under POCM, corresponding expenditures must account for TDS deduction rather than making provisions. The matter was remanded to CIT(A) for consideration of subsequent TDS payments and deposits. However, the tribunal allowed the appeal regarding section 14A disallowance, ruling that no disallowance can be made in the absence of exempt income during the relevant year. Case-Laws Income Tax Wed, 05 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753664