Section 133A(2A) of the Income Tax Act
Income-tax Act, 2025: s.253
Section 133A(2A) falls under section 133A of the Income-tax Act, 1961, which corresponds to section 253 (Powers of survey) of the Income-tax Act, 2025.
Read section 253 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 133A(2A) is Merilyn Shipping & Transports v. Addl. CIT (136 ITD 23), cited in 139 of the 46 judgments on BharatTax that turn on this section.
Leading authorities on Section 133A(2A)
Section 40(a)(ia) disallowance applies only to expenses that remain payable at the end of the financial year, not to expenses that have been actually paid during the previous year without deduction of tax at source.
Interest under section 201(1A) cannot be levied if the recipient of income has already paid the due taxes. The onus is on the revenue to prove that taxes have not been recovered from the primary liable person.
Interest under Section 201(1A) is not leviable if there is no short deduction of TDS, particularly when income has not accrued to the vendor at the time of provision creation and withholding tax provisions are not applicable.
Section 194C is attracted when payments are made for carrying out work in pursuance of a contract with a specified person. If vehicles are hired on an 'as and when needed' basis, Section 194C may not apply.
Interest income on Non-Performing Assets (NPA) need not be recognized on an accrual basis and the provisions of Section 145 of the Income Tax Act do not play a role in such income recognition. Furthermore, if interest does not result in any income, there can be no levy of tax.
A technical breach of filing a statutory form, such as Form 27C, can be condoned. No liability under section 206C(6A) or 206C(7) can be fastened on the assessee if the statutory form is filed, even if not furnished in time.
Common Area Maintenance (CAM) charges paid by a tenant are considered rent and are subject to TDS under Section 194-I of the Income Tax Act, even if paid to a third party, as the term 'rent' is broadly interpreted to include payments for the use of property and associated services.
Payments made for delayed purchase bills are not considered interest under section 2(28A) if they have a direct link and immediate nexus with a trading liability.
A payment made due to delayed payment of purchase bills is not considered interest under Section 2(28A) if it has a direct link and immediate nexus with a trading liability.
