Treatment of Section 30(aa) vs Section 19 (32) of ITO:

Section 30(aa):
The expense shown in Income Statement is inadmissible (in calculating taxable business income) if any
payment is made by assessee to any person without deducting / crediting taxes at sources in accordance
with Chapter Vll of ITO.

# The amount of disallowances made u/s 30 [including sec 30(aa)] shall be treated separately as ‘Income
from business & profession’ and the tax thereon shall be calculated at regular rate. ( On the otherhand,
the amount of disallowances made u/s 29 shall be added to business income and so the tax thereon
shall be calculated at applicable rate.

Section 19 (32):
Where any payment made for acquiring any asset without deducting tax at source shall be treated as
deemed income as ‘Income from other sources’ in the income year in which the payment was made and
so the tax thereon shall be calculated at applicable rate.

(Collected)