2008 (11) TMI 363

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....he judgment of the court was delivered by Adarsh Kumar Goel J.- This petition seeks quashing of notice dated October 17, 2008 (annexure P-1) requiring the petitioner to show cause why disallowance of expenses be not made under section 40(a)(ia) under the Income-tax Act, 1961 (in short, "the Act") for its having deducted the TDS but failing to deposit the same as required under section 200(1) of....

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....ng notice on a petition raising the question of constitutionality of section 40(a)(ia) of the Act, and staying penal action till the filing of the counter-affidavit. 5. We have heard learned counsel for the petitioner and perused the record. 6. The relevant provision is reproduced below : '40. Notwithstanding anything to the contrary in sections 30 to 38, the following amounts shall not b....

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....ar but paid in any subsequent year after the expiry of the time prescribed under sub-section (1) of section 200, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid." 7. It cannot be disputed that the Legislature, in exercise of its taxing power, not only can provide for levying tax, it can also provide for penal action for enfor....

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....equent year, one makes the deduction or makes the deposit, one gets the benefit of deduction. The provision can-not be held to be harsh. We are not, at this stage, concerned with the plea that there was genuine justification for not complying with the provision of TDS, which is a matter to be examined by the competent authority. 9. We are unable to hold that there is inherent lack of jurisdicti....