2012 (5) TMI 737

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....sly erred in deleting the addition of Rs. 52,10,873/- made by the Assessing Officer u/s. 40(a)(ia) on account of late deposit of TDS made *by the assessee with respect to rent, commission and maintenance expenses not appreciating fact that the amendment brought in the Income Tax Act u/s. 40(a)(ia) was only effective from 01.4.2010 and not retrospective in nature. 2. The appellant craves to add, amend or modify the ground of appeal at any time." 3. In this case Assessing Officer noted that as per column 27(b) of the Audit Report the following TDS has been deposited late. Amount of Tax Deducted / collected at source (in Rs.) Due date for remittance to Government Details of payment; Date/ (in Rs.) 2,869/- 7/8/2007 ....

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....ucted or, after deduction, has not been paid on or before the due date specified in sub section (1) of section 139. 4.1 Referring to the above, assessee submitted that the aforesaid section is attracted in either of the following situations:- a) If the TDS is deductible but has not been deducted. b) If the TDS has been deducted but has not been paid before 30.9.2008. 4.2 It was submitted neither of the situations is attracted in the case of the assessee. The deductible tax has been deducted and the deducted tax has been deposited before 30.9.2008. 4.3 Assessee further placed reliance on the following case laws:- a) Calcutta High Court in the C.I.T., Kol-XI, Kol vs. Virgin Creations (ITA No. 302 of 2011, G....

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....said amendments, in our opinion, thus are clearly remedial / curative in nature as held by Hon'ble Supreme Court in the case of Allied Motors (P) Ltd. (supra) and Alom Extrusions Ltd. (supra) and the same therefore would apply retrospectively w.e.f. 1st April, 2005. In the case of R.B. Jodha Mal Kuthiala vs. C.I.T. (1971) 82 ITR 570 (Supreme Court), it was held by the Hon'ble Supreme Court that a proviso which is inserted to remedy intended consequences and to make the provisions workable, requires to be treated as retrospective in operation so that a reasonable interpretation can be given to the section as a whole. In the present case, the amount of TDS from the freight charges during the period 1st April, 2005 to 28th Feb, 2006 was paid b....