The provisions of section 40(a)(ia) are applicable only to the expenses payable as on 31st March of every year and cannot be invoked to disallow the amounts which have already been paid during the previous year, without deducting tax at source

•Merlyn Shipping 140 TTJ 1 (SB) Vizag.
Followed by ITAT Asr in Jamkash Vehicleades Pvt. Ltd
 I.T.A. No. 414(Asr)/2010 dated 6-08-2012 
Bright Enterprises Private Limited
Pranik Shipping & Services Ltd. v. Asstt. CIT [2012] 135 ITD 233/19 taxmann.com 107 (Mum.)
Underwater Services Co. [2012] 25 taxmann.com 216 (Mumbai - Trib.)