TaxTMI 
TaxTMI 
2010 (11) TMI 1033
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....owners in the month of March'2005 because tax deducted on such amount in the month of March,2005 have been deposited on 25.4.2005 i.e., before the due date specified u/s.139(1) of I.T.Act,1961 as per the amended sec.40(a)(ia). The positon of law as amended w.r.e.f. 1.4.2005 clearly states as follows : 40(a)(ia) - any interest, commission or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work including supply of labour for carrying out any work, on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, [has not been paid,- (A) in a case where the tax was deductible and was so deducted during the last month of the previous year, on or befo....
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....d u/s.154 for allowance. Aggrieved the assessee appealed before the first appellate authority indicating that the learned Assessing Officer was not justified to restrict his finding to the assessment order only while rectifying a mistake on record as the wrong application of law was on a retrospective amendment to cover the issue in its totality. However, the learned CIT(A) confirmed the action of the Assessing Officer by indicating that the deduction made in the month of February was paid in the month of March, therefore, was as per law which was followed by the Assessing Officer to rectify the apparent mistake to the extent of allowing expenditure claimed u/s.40(a)(ia) amounting to ₹ 3,91,179 only. 3. The learned Counsel for the as....