https://www.taxtmi.com/caselaws?id=470051 Section 40(a)(ia) of the Income-tax Act, 1961 restricts deduction of expenditure otherwise allowable under Sections 30 to 38 where tax required under Chapter XVII-B has not been deducted or paid. The provision applies only where the expenditure is claimed as a deduction in computing business income. Amounts capitalised as capital work-in-progress, not debited to the profit and loss account and not claimed as revenue expenditure, therefore fall outside its operative scope. Separate proceedings for failure to deduct tax at source do not determine the allowability of capitalised amounts in assessment proceedings under Section 143(3). en-us Wed, 23 Oct 2024 00:00:00 +0530 Tue, 14 Jul 2026 19:02:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470051 Section 40(a)(ia) of the Income-tax Act, 1961 restricts deduction of expenditure otherwise allowable under Sections 30 to 38 where tax required under Chapter XVII-B has not been deducted or paid. The provision applies only where the expenditure is claimed as a deduction in computing business income. Amounts capitalised as capital work-in-progress, not debited to the profit and loss account and not claimed as revenue expenditure, therefore fall outside its operative scope. Separate proceedings for failure to deduct tax at source do not determine the allowability of capitalised amounts in assessment proceedings under Section 143(3). Case-Laws Income Tax Wed, 23 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470051