Tribunal upholds CIT(A) decision on expense disallowance & partly allows appeal on shooting charges.

The Tribunal upheld the CIT(A)'s decision to delete the disallowance of expenses on account of carriage fees due to the retrospective application of the relevant provisions. The revenue's appeal regarding the shooting charges issue was partly allowed as the assessee's counsel conceded the issue, leading to its allowance in favor of the revenue.

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Issues:
1. Disallowance of expenses on account of carriage fees for non-deduction of TDS under section 194C and invoking section 40(a)(ia) of the Income-tax Act.
2. Disallowance of shooting charges.

Analysis:

Issue 1: Disallowance of expenses on account of carriage fees
The appeal by the revenue challenges the CIT(A)'s deletion of the disallowance of expenses on account of carriage fees due to non-deduction of TDS under section 194C and invoking section 40(a)(ia) of the Act. The assessee contended that the issue is covered by a decision of the jurisdictional High Court, holding that the amendment made by the Finance Act, 2010, in section 40(a)(ia) is retrospective. The High Court cited previous Supreme Court decisions supporting the retrospective application of such provisions. The assessee had deducted TDS on the carriage fees paid to different parties before the due date of filing the return of income. The AO disallowed the expenses, but the CIT(A) deleted the disallowance, considering the curative nature of the amendment to section 40(a)(ia) by the Finance Act, 2010. The Tribunal upheld the CIT(A)'s decision, confirming the deletion of the disallowance.

Issue 2: Disallowance of shooting charges
The revenue's appeal also contested the CIT(A)'s deletion of the disallowance of shooting charges. The revenue raised concerns that the CIT(A) did not consider section 194C of the Income Tax Act in conjunction with section 40(a)(ia). However, the assessee's counsel conceded this issue, leading to its allowance in favor of the revenue. Consequently, the appeal of the revenue was partly allowed, with the Tribunal pronouncing the order in the open court.

In conclusion, the Tribunal upheld the CIT(A)'s decision to delete the disallowance of expenses on account of carriage fees due to the retrospective application of the relevant provisions and allowed the revenue's appeal regarding the shooting charges issue as conceded by the assessee's counsel.

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