Tds and advance tax query

CONSIDER THE FOLL CASE:

A COMPANY PAID Rs 3 LACS TO ITS DIRECTOR AS REMUNERATION WITHOUT DEDUCTING TDS.

HOWEVER THE DIRECTOR HAD INFORMED THE COMPANY  ABOUT HIS ADVANCE TAX CHALLANS OF Rs 15000/- EACH OF SEP, DEC AND MARCH. 

THE AO WANTS TO DISALLOW THE EXPENSES OF 3LACS  U/S 40(A)(IA)??

WHETHER HE CAN DO SO??

ALSO IS THERE ANY REMEBDY POSSIBLE IN THIS CASE.

ALSO QUOTE ANY CASE LAW IF APPLICABLE.