2017 (9) TMI 1519

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....ee : Shri A. Srinivas For The Revenue : Shri v. Sreekar, DR ORDER PER D. MANMOHAN, VP. These two appeals are directed against the order passed by Ld. CIT(A)-3, Hyderabad and they pertain to the assessment year 2012-2013. Invocation of provisions of section 40(a)(ia) of the Act by the Assessing Officer is the subject matter of consideration before the Tribunal. 2. The assessee-compan....

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....1.4.2013 and therefore it is not applicable to the year under consideration. Moreover, assessee has not furnished any certificates such as Form No. 26AS. He thus invoked the provisions of section 40(a)(ia) of the Act and disallowed the expenditure of Rs. 45,41,272/-. 3. Aggrieved assessee contended before the Ld. CIT(A) that the payments having been offered to tax in the recipient's hands, no T....

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....tional High Court in the case of Janpriya Engineering Syndicate. 5. Ld. CIT(A) followed the aforecited decisions to hold that with regard to payments already made the provisions of section 40(a)(ia) of the Act is not applicable and accordingly the disallowance was restricted to 7,14,128/-. 6. Aggrieved by the order passed by the Ld. CIT(A) both the A.O. as well as the assessee preferred appe....

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....ourt in the case of Palam Gas Service vs. CIT (394 ITR 300) (SC) the judgment of the jurisdictional High Court in the case of Janpriya Engineering Syndicate (supra) is no longer a good law and hence section 40(a)(ia) is not applicable even with respect to the payments already made by the assessee. In other words, section 40(a)(ia) can be applied if the amount is "paid" or "payable" to any resident....