2017 (4) TMI 110

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....venue by way of sales / turnover during the year but the A.O. has assessed substantive positive income. 2. The learned CIT(A) erred in not considering the order of the Hon'ble I.T.A.T. which was made in the immediate previous assessment year i.e. 2004-05. 3. The learned CIT(A) erred in confirming the additions made u/s 40(a)(ia) without considering the contents of the submission made before him. 4. The learned CIT(A) erred in confirming the additions made for unexplained sundry creditors. 5. The learned CIT(A) erred in not allowing the deduction u/s 80IB(10)(b) of the I.T. Act, 1961. 2. At the outset in this case learned counsel submitted that he shall be pressing only ground No. 3. Hence all grounds e....

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....e previous year relevant to Asstt. Year. 2005-06. The Assessing Officer disallowed the expenditure as the assessee failed to deduct TDS as required U/s. 40(a)(ia). The assessee respectfully submitted that provision of section 40(a)(ia) is applicable only to expenditure which is payable as on 31 st March of every year and not on the expenditure already been paid during the previous year without deducting tax at source. The assessee has already paid sum of Rs. 1,01,62,647/- during the previous year relevant to Asstt. Year 2005-06 and sum of Rs. 5,91,377/- payable as on 31/03/2005. The assessee respectfully submitted that amount payable in respect of aforesaid expenses were Rs. \ 5,91,377 / - only and the same may kindly be c....

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....decision of the Hon'ble Allahabad High Court was dismissed by the Hon'ble Apex Court in CC No. 8068/2014 vide order dated 02-07-2014. The Hon'ble Apex Court has held as under : " Heard Mr. Mukul Rohatgi, learned Attorney General, for the petitioner. Delay in filing and refilling special leave petition is condoned. Special leave petition is dismissed." We are also aware that there are certain other Hon'ble High Court decisions wherein this proposition has not been upheld that provisions of section 40(a)(ia) are attracted only when the amount is payable. However, we note that there is no jurisdictional High Court decision on this issue. In such a situation we now have a Hon'ble Allahabad High Court decision which is in favour of t....