ITAT Mumbai Also Declines To Follow Special Bench Ruling On S. 40(a)(ia) TDS Disallowance

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From: editor@itatonline.org itatonline.org@gmail.com

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

Piyush C. Mehta vs. ACIT (ITAT Mumbai)

S. 40(a)(ia): Amendment by FA 2010 w.e.f 1.4.2010 is retrospective

 

For AY 2005-06, the AO made a disallowance of expenditure incurred by the assessee on the ground that the assessee had made the TDS payments u/s 194C after the end of the year. Before the Tribunal, the assessee claimed that as the TDS had been paid before the due date of filing the ROI, no disallowance could be made as per s. 40(a)(ia) amended by the FA 2010 w.e.f. 1.4.2010. The assessee relied on Virgin Creations and claimed that it had to be followed in preference to the contrary ruling of the Special Bench in Bharati Shipyard Ltd 132 ITD 53 (Mum). HELD by the Tribunal:

 

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Editor,

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