Corporate TaxArticle·14 August 2026
Portal Glitch saves deduction
By J the App
Executive Summary
The ITAT, Bangalore, by its order dated 14 July 2026, deleted the disallowance under Section 40(a)(ia) after holding that the assessee had substantially complied with the first proviso to Section 201(1).
The Tribunal observed that procedural delay caused by portal-related technical issues cannot deprive a taxpayer of a substantive statutory benefit where the payees had already discharged their tax liability.
Background
The assessee had paid interest of ₹12.82 crore to six related parties without deducting tax at source. However, i...
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