Section 40(a)(ia) TDS Disallowance: Special Bench Verdict Cannot Be Followed: ITAT Ahmedabad

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Wed, Apr 25, 2012 at 11:16 AM
Subject: Message from EGroup of SolapurCAs S. 40(a)(ia) TDS Disallowance: Special Bench Verdict Cannot Be Followed: ITAT Ahmedabad
To: editor@itatonline.org

 

Dear Subscriber,

 

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

M/s. Alpha Projects Society P. Ltd vs. DCIT (ITAT Ahmedabad)

S. 40(a)(ia): Special Bench verdict cannot be followed in view of High Court verdict

 

In AY 2005-06, the assessee made payments to contractors & for professionals & technical services. Though TDS was deducted, it was paid after the end of the FY but before filing the ROI. The assessee pleaded that s. 40(a)(ia), as amended by the FA 2010 w.e.f. 1.4.2010 to provide that no disallowance should be made if the TDS was paid before the due date of filing the ROI should be held to be retrospective. However, the AO & CIT (A), rejected the claim by relying on Bharati Shipyard Ltd 132 ITD 53 (Mum) (SB). On appeal to the Tribunal, HELD allowing the appeal:

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Regards,

Editor,

itatonline.org

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