2018 (6) TMI 616

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....ant Mr. Prithu Dudheria, Adv. For the Respondent ORDER The Court : The assessee is in appeal for the Appellate Tribunal having reversed an order passed by the Commissioner (Appeals). The substantial question of law that has been raised by the appellant is as follows: "Whether year-end provisions of expenditure incurred during the year for which bills were received after the close of the year....

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....relevant financial year, no provision for TDS had been made and, as such, Section 40(a)(ia) was attracted. The assessee reasoned with the Assessing Officer that since the assessee had not received the bills before the close of the year, there was no question of making any provision for TDS to be deposited. The assessee contended that tax was deducted within days of the bills being presented and t....

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....n by this Court. Section 40(a)(ia) at the relevant time provided for the exclusion of the entire amount paid from deduction if either tax had not been deducted at source or the deducted tax was not deposited within the stipulated time. If the provision is seen, as it ought to be, as a kind of penalty for not complying with the provisions pertaining to deduction and deposit of tax at source, it ha....

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.... either count, there is a penalty provided therefor. Once it is seen that the assessee did not fall foul of either condition, the penalty clause would not be attracted. Indeed, the Commissioner (Appeals) noticed a similar situation which had been endorsed by this Court for the tax which had been deducted not being deposited in course of the relevant year since by the end of the relevant year, the....