TaxTMI 
TaxTMI 
2015 (10) TMI 794
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....e the Ld.CIT Appeals erred in making an addition of Rs. 1,21,33,003 u/s 40(a)(ia) of the Act. The addition was unjustified and the same be deleted. 2. For that in the facts and circumstances of the case the appellant having deducted TDS no disallowance u/s 40(a)(ia) of the Act was called for. Thus the addition was unjustified and the same be deleted. 3. For that in the facts and circumstances of the case the appellant having made short TDS no disallowance u/s 40(a)(ia) of the Act was called for. Thus the addition was unjustified and the same be deleted. 4. For that the appellant craves leave to modify or amend the above grounds or press for new grounds of appeal." ITA No.5....
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....a) can be made in respect of expenses payable (liability) only. The ld. CIT(A) further noted that no disallowance can be made in respect of amounts actually paid. Hence the ld. CIT(A) deleted the addition of Rs. 1,06,92,991/-. However, the ld. CIT(A) noted that the amount payable as shown by the assessee's balance sheet in this regard was Rs. 1,21,33,003.93. Hence the ld. CIT(A) noted that since the assessee has not deducted TDS on the amount payable of Rs. 1,21,33,003.93 he disallowed u/s 40(a)(ia) of the Act and the income of the assessee was enhanced by the amount of Rs,.1,21,33,003.93. Against the above order the assessee and the Revenue are in cross appeals before us. 6. The ld. Counsel of the assessee submitted that the sundry c....
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....ucted the tax and deposited the payment in this regard. In this regard he has submitted the following chart : Sl.No. Gross TDS TDS deposited within 1. 34,15,298/ 34,584/ 31-03-2009 2. 59,16,222/ 62,252/ 30-09-2009 3. 13,61,471/ 1,793/ Post 30-09-2009 1,06,92,991 6.3. In this regard he submitted that the TDS which was deposited within the due date of filing of return u/s 139(1) of the Act no disallowance can be made u/s 40(a)(ia) of the Act in view of the decision of the Jurisdictional High Court of Calcutta in the case of Virgin Creations in ITAT No.302 of 2011. On the basis of the above the ld. Counsel of the assessee submitted that payments on TDS made wit....
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....e has deducted and paid the tax on such sum before the date of furnishing of return of income by the resident payee. In support of his claim the ld. Counsel of the assessee placed reliance upon the decision of Special Bench of the Tribunal in the case of Bharti Auto Products vs. CIT 37 taxmann.com 37 and the decision of ITAT Agra Bench in the case of Rajeev Kumar Agarwal vs Addl.CIT in ITA NO.337/Agra/2013 dated 29.05.2014. 7. The ld. DR, on the other hand relied upon the orders of the authorities below and has been heard. 8. We have heard both the counsel and perused the records. We find that the ld. Counsel of the assessee is correct in submitting that sundry creditors of Rs. 1,21,33,003 cannot be disallowed u/s 40(a)(ia) of the Act....