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of <h1>Appeal partly allowed, limits disallowance to 30% under section 40(a)(ia), sets precedent for future cases.</h1> <h3>Chopra Properties Versus Addl. CIT, Range- 33, New Delhi.</h3> Chopra Properties Versus Addl. CIT, Range- 33, New Delhi. - TMI Issues:1. Disallowance under section 40(a)(ia) for non-deduction of TDS.2. Jurisdiction of CIT(A) to enhance income.3. Restriction of disallowance to 30% of the total addition.Analysis:1. The appeal was against the CIT(A)'s order enhancing the income of the assessee by &8377; 1,35,00,000 due to non-deduction of TDS under section 40(a)(ia). The Assessing Officer disallowed &8377; 16,450 and &8377; 1,36,77,355 as expenses related to unpaid TDS and sundry creditors. The CIT(A) upheld the disallowance but provided some relief. The assessee contended that the CIT(A) exceeded jurisdiction, made incorrect disallowances, and violated principles of natural justice. The assessee argued that only 30% of the amount should be disallowed based on retrospective amendment to section 40(a)(ia) and cited relevant case laws.2. The Tribunal considered the issue of disallowance under section 40(a)(ia) and referred to a previous decision where it was held that the disallowance should be restricted to 30% of the total addition. The Tribunal followed this precedent and directed the Assessing Officer to limit the disallowance accordingly. The Tribunal also allowed the assessee to request similar treatment in subsequent years and held that the Assessing Officer should decide such requests based on facts and law. The appeal was partly allowed based on this decision.3. The Tribunal's decision to restrict the disallowance to 30% of the total addition on account of non-deduction of TDS was in line with previous rulings and provided relief to the assessee. The Tribunal emphasized the importance of following legal principles and directed the Assessing Officer to consider similar requests in the future. Overall, the appeal was partly allowed, and the judgment was pronounced on August 1, 2018.
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