In [2025] 180 taxmann.com 276 (Visakhapatnam – Trib.) the assessee made provision for tax audit expenses. As no taxes were withheld on the said provision the tax officer disallowed the same under section 40(a)(ia) stating that the assessee had not placed on record any material which would substantiate that the payees had paid corresponding tax on said amount.
It is therefore desirable that proper taxes are withheld on all provisions else 30% of such sums be taken as disallowance in computation.