Can non deduction of tax be treated as income escaping asst.

This query is : Resolved

Shreyans (Querist)
Follow

23 December 2009 We know that when TDS is not withheld, the expenditure is not allowed as deduction, but allowed as a deduction in the year in which it is paid to the government. Moreover the payee has paid his tax duly for AY 2004-05. Now the assessing officer has reopened the assessment. My question is can dis-allowance u/s 40(a)(ia) be treated as income escaping assessment (i.e. a ground for reassessment). I think it should not be, because the same will anyhow be allowed in the year in whcih Tax is deducted. Please don't mention the case of Hindustan Cola Beverages, and circular of 1997 as it deals with recovery of tax and not disallownace. Pls. quote other case laws. Thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

24 December 2009 If no assessement has been made, the AO can reopen the case under explanation 2(b) of section 147 on the reason that the assessee has understated the income.
Alternatively, if an assessment has been made, time limit for reopening as per proviso to section 147 has to be complied by AO. If it is complied with, reopening of assessment will sustain as per clause (c)(i) of explanation 2 of section 147 of the Income tax Act,1961 on the reason that income chargeable to tax has been under assessed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kavita goel

venkanna setty

Sivanath VV

Shivchandra Jakhotia

jaspreet sidana

Subscribe Now

Can non deduction of tax be treated as income escaping asst.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA