2011 (4) TMI 1385

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....turn of income showing income of Rs. 3,67,58,515. The final taxable income was ascertained at Rs. 3,77,76,730. The AO made a disallowance of Rs. 7.50 lakhs u/s 40(a(ia) of the Act. The AO examined the debit balance of Rs. 3.55 crores under the head "commission". On verification of the details of the commission, it was found that no tax had been deducted on the following commissions: 1. RDX Impex & Sales Promotion Ltd. Rs. 50,000 2. SRS Buildcon P. Ltd. Rs. 7,00,000 3. By virtue of the impugned order, the CIT(A) confirmed the disallowance of Rs. 7 lakhs. 4. Aggrieved, the assessee is in appeal. 5. Challenging the impugned order, the Ld.Counsel for the assessee has contended that the CIT(A) has erred in confirming t....

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....nter alia, that the provisions of section 40(a)(ia) of the Act provided in nondeduction of amount which remains payable to a resident in respect of fees for technical services, etc.; that it is not applicable where expenditure is paid; that it is applicable only in cases where the payments are due and outstanding; that the word "payable" is not defined, though the word "paid" is defined u/s 43(2) of the Act to mean "actually paid" or "incurred"; that hence, by implication, the word "payable" does not include "paid"; that the difference in "paid" and "payable" is also there in the Rules for depositing the TDS and also for levy of interest u/s 234, where interest is worked out on the basis of tax actually deducted at source and not on the bas....