TaxTMI 
TaxTMI 
2018 (4) TMI 1426
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....as raised following grounds of appeal:- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals) erred in deleting the disallowance of Rs. 52,70,069/- made u/s 40(a|(ia) of the Act. 2. The Ld. CIT(A) erred in holding that that amendment made by the Finance Act, 2010 w.e.f. 01.04.2010 in section 40(a)(ia) of the Act is having retrospective effect without appreciating the ratio laid down by the Hon'ble Supreme Court in the case of Virtual Soft System Ltd. vs CIT 289 ITR 83 (SC) holding that it is well-settled legal position that an amendment can be considered to be declaratory and clarificatory only if the statue itself expressly and unequivocally states that it is a declaratory and clarific....
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....estment Pvt. Ltd. 235 ITR 433 held that the statute has taken care of the liability to pay the tax by specifically providing in section 191 that the assessee would be liable to pay the tax deductible at source directly if it is not so deducted. The assessing officer has not accepted the explanation of the assessee. The assessing officer held that the assessee has violated the provision of section 40(a)(ai) and disallowed the claim of the assessee. 5. Aggrieved assessee filed appeal before the ld. CIT(A). The ld. CIT(A) has allowed the appeal of the assessee. 6. We have heard both the sides and perused the material on record carefully. The assessee had paid an amount of Rs. 52,70,069/- to 6 transporters between the period 01.04.2006 to....
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.... and, therefore, if the tax deducted is deposited by the assessee before the due date of filing the return, the same is required to be given credit in the very assessment year". 7. We have also noticed that the jurisdictional Hon'ble Court in the case of Ashok T Patel 43 taxmann.com 27 (Guj) held that amendment in section 40(a)(ia) by Finance Act, 2010 would apply retrospectivelyIn view of the above facts and judicial finding we observed that If tax deducted is deposited by assessee before due date of filing return of income, same is required to be given credit in very same assessment year. Therefore, the issue is now covered in favour of the assessee by the decision of the jurisdictional High Court and accordingly, we are inclined w....
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.... cash instead cross cheque. The assessee is not covered by the exception provided under rule 6DD(j) of the act. The provision of Rule 6DD of the IT rule is reproduced here as under:- " No disallowance under sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where a payment59 or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees60 in the cases and circumstances specified hereunder, namely :- 61(a) where the payment is made to- (i) the Reserve Bank of India or any banking company62 as de....
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.... Banking Regulation Act, 1949 (10 of 1949)], whether incorporated or not, which is established outside India; 66(d) where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee; 67(e) where the payment is made for the purchase of- (i) agricultural or forest produce; or (ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or (iii) fish or fish products68; or (iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles, produce or products; (f) where the payment is ....