im asking in relation to A.Y. 2014-2015.
sec.(40)(a)(ia) says that expense will not be allowed in a particular P.Y, if either TDS is not deducted in the P.Y. or TDS is deducted in the P.Y. but not paid with time timit u/s 139(1) i.e due date of filing of ROI.
further if TDS is deducted in subsequent year or TDS is deducted in the previous year but paid in subsequent year after due date of filling of ROI, then expense will be allowed, in the year in which TDS is paid to govt.
further where assesee failed to deduct the TDS and by virtue of proviso to section 201(1), he is not treated as assessee in default, he shall be deemed to have DEDUCTED AND PAID THE TAX ON THE DATE ROI FILED BY RESIDENT PAYEE U/S 139.
( IM NOT ASKING ANY DIFFERENCE ON PAID OR PAYBLE, NOR IM ASKING FOR ROI FILLED BY RESIDENT PAYEE SHOULD BE ON HIS DUE DATE OR NOT)
NOW MY QUETION IS:
WHEN TDS IS NOT DEDUCTED AND ASSESSEE IS NOT CONSIDERED AS ASSESSEE IN DAFAULT BY VIRTUE OF PROV. TO SEC 201(1), THEN HE IS DEEMED TO HAVE DEDUCTED AND PAID TDS ON THE DATE ROI FILLED BY RESIDENT PAYEE
THEREBY IS CLEAR TO UNDERSTAND IN THIS CASE THAT ASSESSEE WILL BE ALLOWED DEDUCTION OF EXPENSE IN SUBSEQUENT YEAR IN EVERY CASE , SINCE HE IS DEEDMED TO HAVE DEDUCTED TDS IN SUBSEQUENT YEAR WHEN RESIDENT PAYEE FILED ROI AND HE IS DEEMED TO HAVE PAID TDS ON THE SAME DATE.
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