https://www.taxtmi.com/caselaws?id=470077 Section 40A(i) of the Income-tax Act, 1961 operates where expenditure involving a payment has been claimed or allowed but the required tax deduction has not been made. External Development Charges paid to HUDA were shown in the assessment records and profit and loss account as neither claimed nor allowed as expenditure. The statutory condition for applying the disallowance provision was therefore absent, and the amount was not liable to disallowance under Section 40A(i). The governing principle is that an amount neither claimed nor allowed as expenditure cannot be disallowed under a provision regulating expenditure disallowances. en-us Mon, 12 Jan 2026 00:00:00 +0530 Tue, 14 Jul 2026 19:02:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470077 Section 40A(i) of the Income-tax Act, 1961 operates where expenditure involving a payment has been claimed or allowed but the required tax deduction has not been made. External Development Charges paid to HUDA were shown in the assessment records and profit and loss account as neither claimed nor allowed as expenditure. The statutory condition for applying the disallowance provision was therefore absent, and the amount was not liable to disallowance under Section 40A(i). The governing principle is that an amount neither claimed nor allowed as expenditure cannot be disallowed under a provision regulating expenditure disallowances. Case-Laws Income Tax Mon, 12 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470077