https://www.taxtmi.com/caselaws?id=761697 ITAT Mumbai ruled on TDS disallowance under section 40(a)(ia) where appellant failed to deduct TDS on payments to NBFCs and exempt trust. CIT(A) upheld AO's disallowance despite appellant furnishing Form 26A certificate showing payees filed returns including such income and paid taxes. ITAT held that while appellant was liable to deduct TDS, the second proviso reduces section 40(a)(ia) rigours when payee discloses income and pays taxes. Appellant discharged primary burden by submitting certified Form 26A. AO has adequate powers to verify form's correctness by seeking information from payees rather than expecting taxpayer to obtain details from NBFCs. Matter restored to AO for further enquiries. Appeals allowed for statistical purposes. en-us Thu, 24 Oct 2024 00:00:00 +0530 Thu, 14 Nov 2024 14:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761697 ITAT Mumbai ruled on TDS disallowance under section 40(a)(ia) where appellant failed to deduct TDS on payments to NBFCs and exempt trust. CIT(A) upheld AO's disallowance despite appellant furnishing Form 26A certificate showing payees filed returns including such income and paid taxes. ITAT held that while appellant was liable to deduct TDS, the second proviso reduces section 40(a)(ia) rigours when payee discloses income and pays taxes. Appellant discharged primary burden by submitting certified Form 26A. AO has adequate powers to verify form's correctness by seeking information from payees rather than expecting taxpayer to obtain details from NBFCs. Matter restored to AO for further enquiries. Appeals allowed for statistical purposes. Case-Laws Income Tax Thu, 24 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761697