2016 (7) TMI 1246

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....the ld. Commissioner of Income-tax (Appeals)-VIII, Ahmedabad dated 08.02.2013 for Assessment Year 2008-09. 2. Assessee has raised following two grounds:- "1. The CIT(A) erred in upholding the disallowance of an amount of Rs. 1,91,065/- under the provisions of Sec. 40(a)(ia) of the I.T. Act, 1961. 1.1 The CIT(A) failed to appreciate the factual as well as legal submissions made in this regard, a....

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....rmar is also an agriculturist and not a transport contractor. When there is no agricultural work, he used to transport goods on requirement basis only in similar manner. The Assessing Officer held that both these personals were transport contractors and as the TDS u/s 194C was not deducted, applying provisions of Section 40(a)(ia) these amounts were disallowed. 4. Aggrieved, the assessee preferre....

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....otes in this behalf mentioned as under:- "14.3 As mentioned above, in case of non-deduction of tax at source or nonpayment of tax so deducted from certain payments made to residents, the entire amount of expenditure on which tax was deductible is disallowed under section 40(a)(ia) for the purposes of computing income under the head "Profits and gains of business or profession". The disallowance ....

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....sessee contends that the amendment to Section 40(a)(ia) brought in by Finance (No.2) Act, 2014 may be held as retrospectively applicable; in view thereof 30% of the amount on which TDS has not been deducted may be held as disallowable u/s 40(a)(ia). 7. Ld. Departmental Representative is heard. 8. I have heard the rival contentions, perused the material available on record and gone through the or....