TaxTMI 
TaxTMI 
2017 (10) TMI 1421
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.... u/s 40(a)(ia) of the Income Tax Act, 1961, treating the Notification No. 56/2012 dated 31.12.2012 effective from 01.01.2013 for the deduction of tax payment to Indian Bank under the Income Tax Act, 1961 as merely of a clarification in nature. 2. On the facts and in the circumstances of the case, the Ld. CIT (A) has erred in deleting the addition of Rs. 32,19,512/- made by AO ignoring the facts that the provision was created to meet the unascertained liability and hence require to be added back while calculating the book profit. 3. The appellant craves to be allowed to add any fresh grounds of appeal and/or delete or amend any of the grounds of appeal." 2. Briefly stated facts are that the assessee is in the business of manufacturing a....
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....ed that the provision for gratuity is an ascertained liability. 4. In respect of ground no. 1 the AO made disallowance on account of non deduction of TDS on bank charges deducted by the bank while making payment to the assessee for the goods purchased by the customers of the bank against the Debit and Credit cards issued by the bank to its customers. Ld. Counsel submitted that the bank was making the payments to the assessee after making the deduction of the charges to it, as such, there is no occasion for the assessee to deduct the TDS and further bank was not working for the assessee but on the other hand, it was working for its customers, as such, there is no requirement of TDS on bank charges. Ld. CIT (A) placed reliance on the binding....
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.... "The strict construction of penal statutes to manifest itself in four ways: in the requirement of express language for the creation of an offence; in interpreting strictly words setting out the elements of an offence; in requiring the fulfillment to the letter of statutory conditions precedent to the infliction of punishment; and in insisting on the strict observance of technical provisions concerning criminal procedure and jurisdiction. 18. The aforesaid principles and interpretations can apply to taxing statutes. In the present case we further feel the said principle should be applied as HDFC would necessarily have acted as per law and it is not the case of the Revenue that the bank had not paid taxes on their income. It is not a case....