Claiming of expenditure which was disallowed u/s 40(a)(ia)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2015 Dear members of Expert panel,

I have a case: For the AY 2005-06 the expenditure of Rs.1.30 crores was disallowed u/s 40(a)(ia)for non remittance of TDS with in the time. The TDS was remitted in the next Financial year. So this expenditure of Rs.1.30 crores has to be allowed as expenditure for the AY 2006-07. For the AY 2006-07 the ITR has been filed in oct 2006 itself and assessment completed.

The assessment order for the AY 2005-06 was in appeal and was decided only in the year 2015. The appeal order was passed disallowing the expenditure of Rs.1.30 crores. The order also says the TDS was not paid on time hence disallowed for the year 2005-06.

Since the TDS was paid in the next year in my opinion it can be claimed as expenditure in the AY 2006-07. Can you suggest me how to claim the refund in this case ie the procedure.

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 June 2015 You are right it can be claimed as expenditure in the AY 2006-07. But it has not been claimed in the return for AY 2006-07 and assessment also completed now you can't claim it.