Section 40a(i) of the Income Tax Act

Income-tax Act, 2025: s.36

Section 40a(i) falls under section 40A of the Income-tax Act, 1961, which corresponds to section 36 (Expenses or payments not deductible in certain circumstances) of the Income-tax Act, 2025.

Read section 36 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 40a(i) is IBM India (P.) Ltd. v. Income-tax Officer (TDS) LTU, Bangalore (154 ITD 497), cited in 10 of the 40 judgments on BharatTax that turn on this section.

Leading authorities on Section 40a(i)

IBM India (P.) Ltd. v. Income-tax Officer (TDS) LTU, Bangalore
154 ITD 497 · 2015 · ITAT
10
citing judgments

Tax is deductible at source at the time of credit to the contractor's account or payment, whichever is earlier, and section 194C(2) applies even if the sum is credited to a suspense account.

Judgments on Section 40a(i)

Deputy Commissioner of Income Tax, Surat vs. Haywood Hospitality(India) Pvt. Ltd, Surat

In the result, the appeal of the Revenue is dismissed

ITA 880/SRT/2025[2014-15]Status: DisposedITAT Surat26 Feb 2026AY 2014-15

Bench: Dr. B.R.R. Kumar, Vice-Ms Suchitra Kambledeputy Commissioner Of Haywood Hospitality(India) Vs. Income Tax, Pvt. Ltd., Surat 1St Floor, Gujarat Jhm Hotels Ltd., Near Bharti Park, Athwalines, Surat. [Pan : Aabcj9651 N] (Appellant) .. (Respondent) Appellant By : Shri Mukesh Jain, Cit(Dr) Respondent By: Shri Hiren R Vepari, Ar Date Of Hearing 22.01.2026 Date Of Pronouncement 26.02.2026 O R D E R

For Appellant: Shri Mukesh Jain, CIT(DR)For Respondent: Shri Hiren R Vepari, AR
Section 250Section 40Section 40a

Pr. Commissioner of Income Tax-1 vs. M/S Bharti Land Limited

ITA/161/2025HC Delhi12 Jan 2026

Bench: HON'BLE MR. JUSTICE DINESH MEHTA,HON'BLE MR. JUSTICE VINOD KUMAR

Section 40A

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2830/MUM/2024[2018-19]Status: DisposedITAT Mumbai21 Nov 2025AY 2018-19

Bench: SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2823/MUM/2024[2019-20]Status: DisposedITAT Mumbai21 Nov 2025AY 2019-20

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

The New India Assurance Co Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle 3(2)(2), Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2622/MUM/2024[2018-19]Status: DisposedITAT Mumbai21 Nov 2025AY 2018-19

Bench: SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle 3(2)(2), Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2616/MUM/2024[2012-13]Status: DisposedITAT Mumbai21 Nov 2025AY 2012-13

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Techmill Technologies Private Limited, Mysore vs. Assistant Commissioner of Income Tax Circle 1(1) & Tps, Mysore

In the result, appeal filed by the assessee is allowed

ITA 498/BANG/2025[2016-17]Status: DisposedITAT Bangalore31 Oct 2025AY 2016-17

Bench: Shri.Laxmi Prasad Sahu & Shri.Keshav Dubeyassessment Year : 2016-17 M/S. Techmill Technologies Pvt. Ltd., Vs. Acit, 2Nd No.34, Floor, Ramanjaneya Circle – 1(1) & Tps, Complex, Hunsur Main Road, Mysuru. Manasagangothri, Mysuru – 570 006, Karnataka. Pan : Aadct 0474 D Appellant Respondent Assessee By : Shri. Siddesh N Gaddi, Ca Revenue By : Shri. Subramanian S, Jcit(Dr)(Itat), Bangalore. Date Of Hearing : 27.10.2025 Date Of Pronouncement : 31.10.2025

For Appellant: Shri. Siddesh N Gaddi, CAFor Respondent: Shri. Subramanian S, JCIT(DR)(ITAT), Bangalore
Section 142(1)Section 143(2)Section 250Section 271(1)(b)Section 40a

Nidra Hospitality Gujarat Private Limited, Vadodara vs. The ACIT, Circle Intl. Taxn., Vadodara

In the result, the appeal of the assessee is allowed

ITA 882/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad08 Oct 2025AY 2017-18

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleassessment Year 2017-18

For Appellant: Ms. Kinjal Shah, A.RFor Respondent: Shri Kamal Deep Singh, Sr. D.R
Section 143(3)Section 195Section 201Section 201(1)Section 250Section 40a

Principal Commissioner of Income Tax- 04 Delhi vs. Mitsubishi Corporation (India) Pvt Ltd

The appeal is dismissed against the Revenue

ITA/370/2025HC Delhi03 Sept 2025

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

Section 195Section 260ASection 40Section 40A

Principal Commissioner of Income Tax - 4 Delhi vs. Mitsubishi Corporation (India) Pvt Ltd

The appeals are dismissed against the

ITA - 329 / 2025HC Delhi22 Aug 2025
Section 195Section 260ASection 40Section 40A

Sunny Trexim Private Ltd., Kolkata vs. DCIT, Circle - 5(1), Kolkata

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 645/KOL/2024[2017-18]Status: DisposedITAT Kolkata07 May 2025AY 2017-18

Bench: Shri Pradip Kumar Choubey&Shri Rakesh Mishra]

Section 115JSection 142(1)Section 143(3)Section 194Section 195Section 263Section 40a

DCIT, TDS Circle, Gurgaon vs. Zte Telecom India P.Ltd, Gurgaon

In the result, all the 04 Appeals filed by the Revenue are dismissed

ITA 620/DEL/2023[2017-18]Status: DisposedITAT Delhi09 Aug 2024AY 2017-18

Bench: Shri Shamim Yahya & Shri Sudhir Pareek

For Appellant: Ms. Reema Grewal, CAFor Respondent: Shri Amit Katoch, Sr. DR
Section 201Section 201(1)

DCIT, TDS Circle, Gurgaon vs. Zte Telecom India P.Ltd, Gurgaon

In the result, all the 04 Appeals filed by the Revenue are dismissed

ITA 619/DEL/2023[2016-17]Status: DisposedITAT Delhi09 Aug 2024AY 2016-17

Bench: Shri Shamim Yahya & Shri Sudhir Pareek

For Appellant: Ms. Reema Grewal, CAFor Respondent: Shri Amit Katoch, Sr. DR
Section 201Section 201(1)

DCIT, TDS Circle, Gurgaon vs. Zte Telecom India Private Limited, Gurgaon

In the result, all the 04 Appeals filed by the Revenue are dismissed

ITA 618/DEL/2023[2015-16]Status: DisposedITAT Delhi09 Aug 2024AY 2015-16

Bench: Shri Shamim Yahya & Shri Sudhir Pareek

For Appellant: Ms. Reema Grewal, CAFor Respondent: Shri Amit Katoch, Sr. DR
Section 201Section 201(1)

DCIT, TDS, Circle, Gurgaon vs. Zte Telecom India Private Limited, Gurgaon

In the result, all the 04 Appeals filed by the Revenue are dismissed

ITA 617/DEL/2023[2014-15]Status: DisposedITAT Delhi09 Aug 2024AY 2014-15

Bench: Shri Shamim Yahya & Shri Sudhir Pareek

For Appellant: Ms. Reema Grewal, CAFor Respondent: Shri Amit Katoch, Sr. DR
Section 201Section 201(1)

DCIT, Circle-8(1), Kolkata vs. Itc Limited, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1223/KOL/2017[2011-12]Status: DisposedITAT Kolkata10 May 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1166/KOL/2017[2011-12]Status: DisposedITAT Kolkata10 May 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1068/KOL/2017[2010-11]Status: DisposedITAT Kolkata10 May 2024AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

Simens Healthcase Diagnostics Limited ( Through Successor in Interest Siemens Limited ), Mumbai vs. The Pr. CIT, Vadodara-2, Vadodara

ITA 1442/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad03 Apr 2024AY 2008-09

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./I.T.A. No. 1442/Ahd/2015 ("नधा"रण वष" / Assessment Years : 2008-09) Simens Healthcare The Principal बनाम/ Diagnostics Limited Commissioner Of Income Vs. (Through Successor In Tax Interest Siemens Limited) Vadodara-2 Birla Aurora, Level 21, Plot No. 1080, Dr. Annie Besant Road, Worli, Mumbai - 400030 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb8542M (Appellant) .. (Respondent) Shri Jet Kamar, A.R. अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Dr. Darsi Suman Ratnam, Cit.Dr Date Of Hearing 14/03/2024 03/04/2024 Date Of Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: The Instant Appeal Filed By The Assessee Is Directed Against The Order Dated 25.03.2015 Passed By The Principal Commissioner Of Income Tax, Vadodara-2 (‘Pcit’), Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred As To ‘The Act’), Whereby & Whereunder The Assessment Order Dated 23.10.2012 Passed By The Acit, Circle-4, Baroda (In Short ‘Ao’) Has Been Directed To

For Respondent: Dr. Darsi Suman Ratnam, CIT.DR
Section 143(3)Section 14ASection 263Section 40A

Cairn Energy Hydrocarbon Ltd., Gurgaon vs. JCIT, (OSD) Intl. Taxation, Circle, Gurgaon

In the result, all the appeals preferred by the assessee as well as the Revenue

ITA 9492/DEL/2019[2016-17]Status: DisposedITAT Delhi07 Jun 2023AY 2016-17

Bench: Shri Kul Bharat & Shri M. Balaganesh[A.Y.: 2015-16] & [A.Y.: 2016-17]

Section 32Section 32(1)Section 32(1)(iia)Section 40a