2011 (11) TMI 759

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.... Respondent by : Shri P.K.B. Menon O R D E R Per RAJENDRA SINGH (AM). This appeal by the revenue is directed against the order dated 9.1.2009 of CIT(A) for the assessment year 2006-07. The only dispute raised in this appeal is regarding disallowance of expenses under section 40(a)(ia) of the Income tax Act. 2. Briefly stated, facts of the case are that the assessee who was engaged in....

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.... 321 Legal & Professional charges 2,000 100 41 59 TOTAL 3,43,60,938 3,08,729 2,65,322 43,408 Since the tax had not been fully deducted in respect of lorry hire charges paid by the assessee, the AO disallowed the corresponding lorry hire charges amount of Rs. 47,97,510/- under section 40(a)(ia) of the Act. 2.1 The assessee disputed the decision of the AO and sub....

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....t there was no serious default by the assessee and accordingly directed the AO to delete the addition made, aggrieved by which the revenue is in appeal. 3. Before us, the ld. AR for the assessee reiterated the submissions made before the lower authorities. It was also submitted that provisions of section 40(a)(ia) were applicable only when tax was not deducted at all or after deduction had not ....

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....was deductible at source but such tax had not been deducted or after deduction had not been paid to central Govt., will not be allowable as deduction. The Mumbai Bench of the Tribunal in case of M/s. Chandabhoy and Jassobhoy in ITA No.20/Mum/10 (supra), and the Kolkatta Bench of the Tribunal in the case of M/s. S.K. Tekriwal in ITA No.1135/Kol/2010 (supra), have held that provisions of section 40(....