Date: Mon, Dec 10, 2012 at 3:24 PM
The following important judgement is available for download at itatonline.org.
CIT vs. M/s. Merilyn Shipping & Transports (Andhra Pradesh High Court)
Special Bench verdict on s. 40(a)(ia) applying only to "amounts payable" stayed
In Merilyn Shipping & Transports v. ACIT 146 TTJ 1 (Vizag), the Special Bench held by a majority that as s. 40(a)(ia) refers to "amount payable", only the outstanding amount or the provision for expense as of 31st March (and not the amount already paid during the year) is liable for disallowance if TDS is not deducted. It was held that this interpretation was necessary as the Finance Bill proposed the disallowance to apply to any "amount credited or paid" but this was changed to "amount payable" in the Finance Act. On the department's appeal to the High Court, the High Court has vide order dated 8.10.2012 directed "interim suspension" of the Special Bench's verdict.
(Click Here To Read More)
Regards,
Editor,
--------------------
Latest:
CIT vs. M/s. S. K. Tekriwal (Calcutta High Court)
No s. 40(a)(ia) disallowance for short-deduction TDS default
No comments:
Post a Comment