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Section 40(a)(ia) of the act was introduced in the Income Tax Act, 1961 by the Finance (No 2) Act, 2004 w.e.f. 01.04.2005 with the view to augment the revenue through the mechanism of tax deduction at source. This provision was bought so as to disallow the expenses on which TDS is not deducted but the same carries a debatable point now. The point is whether disallowance of non deduction of TDS shall be of amount payable at the end of the year or of all sums paid or payable during the year. Section 40(a)(ia) of the act reads as under: “any interest, commission or brokerage, rent, royalty, fees for professional services of fees for technical services payable to a resident, or amounts payable to a contractor or subcontractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under chapter XV1I-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date spe