Tribunal allows partial appeal on TDS disallowance under Income Tax Act

The Tribunal partially allowed the appeals of the assessees concerning the disallowance of TDS under section 40(a)(ia) of the Income Tax Act. Disallowance of Rs. 32,18,58,199 was deleted as TDS was deposited before the due date, while disallowance of Rs. 4,63,30,647 was partly confirmed. The Tribunal held that the retrospective amendment in section 40(a)(ia) did not apply if the entire TDS amount was paid before the due date, resulting in the deletion of the balance disallowance. The issue of interest charged under section 234B was considered consequential with no separate adjudication required.

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Issues:
1. Disallowance of TDS under section 40(a)(ia) of the Income Tax Act.
2. Applicability of retrospective amendment in section 40(a)(ia).
3. Disallowance of interest charged under section 234B.

Analysis:
1. Disallowance of TDS under section 40(a)(ia):
- Two appeals filed by different assessees for the same assessment year were heard together.
- Dispute regarding disallowance made by the Assessing Officer (AO) under section 40(a)(ia) of Rs.36,81,88,846.
- Tribunal noted that TDS was deposited by the assessee before the due date for filing the return of income.
- Citing a judgment of the Hon'ble Calcutta High Court, the Tribunal held that if TDS is deposited before the due date, no disallowance is justified.
- Disallowance of Rs.32,18,58,199 was deleted as TDS was deposited before the due date.
- Disallowance of Rs.4,63,30,647 was partly confirmed based on the amount payable as on the last day of the previous year.

2. Applicability of retrospective amendment in section 40(a)(ia):
- Ld. CIT(A) confirmed the addition of Rs.2,93,46,430 under section 40(a)(ia) for a different assessee.
- Tribunal referred to a judgment of the Hon'ble Calcutta High Court holding the amendment in section 40(a)(ia) as retrospective.
- As the entire TDS amount was paid by the assessee before the due date for filing the return of income, disallowance under section 40(a)(ia) was held not sustainable.
- Tribunal deleted the balance disallowance and allowed the appeal partly.

3. Disallowance of interest charged under section 234B:
- Issue of charging interest under section 234B was considered consequential with no separate adjudication required.
- Tribunal did not provide a detailed analysis as it was considered a consequential issue.

Conclusion:
- Both appeals of the assessees were partly allowed based on the Tribunal's findings regarding the disallowance of TDS under section 40(a)(ia) and the applicability of the retrospective amendment in the same section. The issue of interest charged under section 234B was deemed consequential without separate adjudication.

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