2010 (7) TMI 801

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....e., much before due date of filing of the return and also because amount of Rs. 10,26,404 is not spent during the year being part of closing stock and therefore cannot be hit by section 40(a)( ia) because this mount is not claimed as expenditure. Order of the ld. CIT is contrary to aim of the amendment which is to give benefit to tax payer but still he does not give the benefit. Secondly, 40(a)(ia ) will hit only amount which is spent. Since Rs. 10,26,404 is not spent being part of the closing stock, cannot be disallowed. 2. On the following expenses claimed in the Profit & Loss Account, the assessee was required to deduct tax :- (i) Clearing charges Rs. 351803 (ii) Freight Cartage inward Rs. 967732 (iii) Shipp....

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....that the disallowance has rightly been sustained by the CIT(A). 6. We have carefully considered the rival submissions in the light of the material placed before us the undisputed facts are that the tax in respect of above mentioned expenditures was deducted by the assessee in the month of March, 2007 and the TDS so deducted was paid much before the due date of filing of the return of income as prescribed in section 139(1) of the Income-tax Act, 1961 which, in the present case, is 30-9-2007. 7. Section 40(a )(ia) describe the circumstances under which, in case the assessee fail to deduct and deposit the tax, the amount can be disallowed. For proper appreciation of the state of affairs, it is necessary to reproduce the relevant part of ....