TaxTMI 
TaxTMI 
2011 (11) TMI 759
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 the business of transport, had made payments....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 submitted before CIT(A) that the assessee was having more than 65 branches spread all over the country and therefore voluminous hire charges c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 been paid. The provisions would not apply to cases where there was shortfall in deduction. He placed reliance on the decision of the Tribunal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uction. 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(a)(ia) would apply only in case of non deduction of tax and not in case of short deduction of tax. The Tribunal has also held that in case of s....