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)

DCIT, Int. Tax. Circle, Gurgaon vs. Cairn Energy Hydrocarbons Limited, Gurgaon

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

ITA 8983/DEL/2019[2015-16]Status: DisposedITAT Delhi07 Jun 2023AY 2015-16

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

Cairn Energy Hydrocarbon Ltd., Gurgaon vs. DCIT, Intl. Taxation, Circle, Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6278/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jan 2023AY 2014-15

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

Cairn Energy Hydrocarbon Ltd., Gurgaon vs. DCIT, Intl. Taxation, Circle, Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6277/DEL/2018[2013-14]Status: DisposedITAT Delhi31 Jan 2023AY 2013-14

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

DCIT, Intl. Taxation, Circle, Gurgaon vs. Cairn Energy Hydrocarbon Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 5989/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jan 2023AY 2014-15

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

DCIT, Intl. Taxation, Circle, Gurgaon vs. Cairn Energy Hydrocarbon Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 5988/DEL/2018[2013-14]Status: DisposedITAT Delhi31 Jan 2023AY 2013-14

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

DDIT, New Delhi vs. M/S. Cairn Energy Hydrocarbons Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6357/DEL/2013[2010-11]Status: DisposedITAT Delhi31 Jan 2023AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

Cairn Energy Hydrocarbons Ltd., Gurgaon vs. DDIT, New Delhi

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6346/DEL/2013[2010-11]Status: DisposedITAT Delhi31 Jan 2023AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

Principal Commissioner of Income Tax, Delhi-2 vs. M/S Boeing India Pvt. Ltd

Appeal is dismissed

ITA/71/2022HC Delhi11 Oct 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

Section 143(2)Section 144Section 144C(1)Section 195Section 40Section 40ASection 92B

ITO, New Delhi vs. M/S. Mantec Consultants Pvt. Ltd., New Delhi

In the result, the appeal of the department stands

ITA 5392/DEL/2014[2010-11]Status: DisposedITAT Delhi27 Nov 2018AY 2010-11

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kantassessment Year: 2010-11

For Appellant: Shri B.B. Bhagat, AdvocateFor Respondent: Shri Gaurav Sharma, Sr. DR
Section 143(3)Section 14ASection 40aSection 9Section 9(1)

M/S at&T Communication Services (India)P.Ltd., Gurgaon vs. DCIT, New Delhi

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

ITA 354/DEL/2017[2012-13]Status: DisposedITAT Delhi31 Oct 2018AY 2012-13

Bench: Shri N.K. Billaiya & Ms Suchitra Kambleassessment Year 2012-13 Assessment Year: 2011-12 At & T Communication Services Vs. Dcit, (India) P. Ltd., Circle-3(2), Vatika Triangle, 3Rd Floor, New Delhi. Sushant Lok-1, Block-A, Gurgaon. Pan: Aacca8033E (Appellant) (Respondent) Assessee By : Shri Kanchun Kaushal, Ar & Ms Chinu Bhasin, Ca Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 25.10.2018 Date Of Pronouncement : 31.10.2018 Order Per N.K. Billaiya, Am: These Are Separate Appeals By The Assessee Preferred Against Two Separate Assessment Orders Dated 20.12.2016 & 29.01.2016 Framed U/S 143(3) R.W. Section 144C(13) Of The Act Pertaining To Assessment Years 2012-13 & 2011-12

For Appellant: Shri Kanchun Kaushal, AR &For Respondent: Shri Sanjay I Bara, CIT, DR
Section 143(3)Section 144C(13)

At&T Communication Services India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

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

ITA 1653/DEL/2016[2011-12]Status: DisposedITAT Delhi31 Oct 2018AY 2011-12

Bench: Shri N.K. Billaiya & Ms Suchitra Kambleassessment Year 2012-13 Assessment Year: 2011-12 At & T Communication Services Vs. Dcit, (India) P. Ltd., Circle-3(2), Vatika Triangle, 3Rd Floor, New Delhi. Sushant Lok-1, Block-A, Gurgaon. Pan: Aacca8033E (Appellant) (Respondent) Assessee By : Shri Kanchun Kaushal, Ar & Ms Chinu Bhasin, Ca Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 25.10.2018 Date Of Pronouncement : 31.10.2018 Order Per N.K. Billaiya, Am: These Are Separate Appeals By The Assessee Preferred Against Two Separate Assessment Orders Dated 20.12.2016 & 29.01.2016 Framed U/S 143(3) R.W. Section 144C(13) Of The Act Pertaining To Assessment Years 2012-13 & 2011-12

For Appellant: Shri Kanchun Kaushal, AR &For Respondent: Shri Sanjay I Bara, CIT, DR
Section 143(3)Section 144C(13)

Sunidhi Securities & Finance Ltd, Mumbai vs. Addl CIT 4(2), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 737/MUM/2016[2012-13]Status: DisposedITAT Mumbai30 Jul 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am Aayakr Apila Sam./ Ita No. 737/Mum/2016 (Inaqa-Arna Baya- / Assessment Year 2012-13)

For Appellant: Shri Hiro Rai, ARFor Respondent: Shri DG Pansari, DR
Section 10(34)Section 143(3)Section 14ASection 8D

ACIT, Chennai vs. M/S. Kaleesuwari Refinery Pvt. Ltd., Chennai

In the result, the Revenue’s appeal for ay 2007-08 in ITA No

ITA 2928/CHNY/2016[2011-12]Status: DisposedITAT Chennai05 Oct 2017AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri. G. Baskar, Advocate
Section 263

ACIT, Chennai vs. M/S. Kaleesuwari Refinery Pvt. Ltd., Chennai

In the result, the Revenue’s appeal for ay 2007-08 in ITA No

ITA 2927/CHNY/2016[2007-08]Status: DisposedITAT Chennai05 Oct 2017AY 2007-08

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri. G. Baskar, Advocate
Section 263

M/S Adc (India) Communications and Infotech Private Limited, Bangalore vs. ITO, Bangalore

In the result, the appeal of the assessee stands allowed for statistical purposes

ITA 1230/BANG/2011[2007-08]Status: DisposedITAT Bangalore27 Sept 2017AY 2007-08

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia, Accountant Membe

For Appellant: Shri Dhanesh Bafna, CAFor Respondent: Ms. Neera Malhotra, CIT-II(DR)(ITAT), Bengaluru
Section 133(6)Section 253

ACIT 25(2), Mumbai vs. S & S Exports, Mumbai

ITA 6863/MUM/2014[2010-11]Status: DisposedITAT Mumbai13 Jan 2017AY 2010-11

Bench: S/Sh. Rajendra & Pawan Singhआयकर अपील सं/.Ita No.6863/Mum/2014,"नधा"रण वष"/Assessment Year-2010-11 Asst. Cit -25(2), M/S. S & S Exports, Room No. 108, 1St Floor, बनाम Manas, B Wing, Eksar, Building No.C-11, Devidas Road, Ext., Borivali (W), Vs. Pratyakshakar Bhavan, Bandra Mumbai-400103 Kurla Complex, Bandra(East), Pan: Aabfs2268P Mumbai-400051. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व ओर से / Revenue By : Ms. Beena Santosh (Dr) "नधा"रती क" ओर से/ Assessee By : Shri R. C. Jain (Ar)

For Appellant: Shri R. C. Jain (AR)For Respondent: Ms. Beena Santosh (DR)
Section 143(3)Section 253Section 254(1)Section 80I

DCIT, New Delhi vs. M/S Xansa India Ltd., Noida

In the result, appeal of the assessee is allowed

ITA 3672/DEL/2013[2007-08]Status: DisposedITAT Delhi09 Dec 2016AY 2007-08

Bench: Shri S.V. Mehrotra & Smt Suchitra Kamblesteria India Ltd. (Estwhile Vs Acit Xansa India Ltd.) Circle-18(1) Seaview Special Economic New Delhi Zone, Building 4, Plot No. 20 & (Respondent) 21, Sector-135, Gautam Budh Nagar Noida Aaacx0385L (Appellant) Dcit Vs Xansa India Ltd. Circle-18(1) (Now Known As Steria India Ltd.,) New Delhi C-2, Sector-1 (Appellant) Noida Aaacx0385L (Respondent)

Section 10(14)Section 10ASection 143(3)Section 195Section 40a

Steria India Ltd. (Estwhile Xansa India Ltd.), Noida vs. ACIT, New Delhi

In the result, appeal of the assessee is allowed

ITA 3264/DEL/2013[2007-08]Status: DisposedITAT Delhi09 Dec 2016AY 2007-08

Bench: Shri S.V. Mehrotra & Smt Suchitra Kamblesteria India Ltd. (Estwhile Vs Acit Xansa India Ltd.) Circle-18(1) Seaview Special Economic New Delhi Zone, Building 4, Plot No. 20 & (Respondent) 21, Sector-135, Gautam Budh Nagar Noida Aaacx0385L (Appellant) Dcit Vs Xansa India Ltd. Circle-18(1) (Now Known As Steria India Ltd.,) New Delhi C-2, Sector-1 (Appellant) Noida Aaacx0385L (Respondent)

Section 10(14)Section 10ASection 143(3)Section 195Section 40a

ACIT, TDS, Noida vs. M/S St Microelectronics Pvt. Ltd., Greater Noida

In the result, the appeal of the Revenue is dismissed

ITA 5597/DEL/2013[2007-08]Status: DisposedITAT Delhi10 Jun 2016AY 2007-08

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2007-08 Asstt. Commissioner Of Income Vs. St Microelectronics Pvt. Ltd., Tax, Tds, Noida Plot No. 11, Knoledge Park-111, Greater Noida Gir/Pan : Aaacs3406M (Appellant) (Respondent) Appellant By Smt. Rishpal Bedi, Sr.Dr Respondent By Sh. K.V.S.R. Krishna, Ca Date Of Hearing 19.04.2016 Date Of Pronouncement 10.06.2016 Order Per O.P. Kant, A.M.: This Appeal Of The Revenue Is Directed Against Order Dated 19/07/2013 Of The Commissioner Of Income-Tax(Appeals), Noida For Assessment Year 2007-08 Raising Following Grounds: “That Cit(A) Has Erred In Law & On Facts In Directing To Delete The Order U/S 201(1)/201(1A) Of The I.T. Act Passed By The Assessing Officer Ignoring The Fact That Assessee Must Follow The Mercantile System Of Accounting For These Payments & Erred In Further Allowing The Assessee To Follow The Cash System Of Accounting For These Payments Solely On The Grund Of Sap Environment Being Followed By The Assessee.” 2. The Facts In Brief Are That During Tax Deducted At Source (Tds) Verification By The Tds Assessing Officer, It Was Observed That Tax Was Not Deducted On Certain Expenses Debited In Profit & Loss. The Assessing Officer Called For The Tax Audit Report In Form No. 3 Cd & Observed That The Auditor Had Also Pointed

Section 145(1)Section 201Section 201(1)Section 40a

Commissioner of Income Tax vs. Maruti Suzuki India Ltd

ITA - 519 / 2010HC Delhi26 May 2010
Section 260ASection 40A