2012 (4) TMI 764

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....9. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the disallowance on expenses paid to DHL Express without deduction of tax by invoking the provision of section 40(a)(ia) of the Act. For this, assessee has raised following ground no.1: "1.That on the facts and circumstances, the Ld. CIT(A)-XX/Kol erred in law and on facts in confirming the disallowance/additions of Rs. 27,43,130/- made by the DCIT, Cir-34/Kol invoking the provisions of Section 40(a)(ia) of the Income Tax Act, 1961 for the reason that the Tax deducted on the said amount in February, 2007 should have been deposited before the 31st March, 2007 but was actually deposited in May, 2007." 3. We have heard rival submissions and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0/2011 dated 23.11.2011, wherein Hon'ble High Court has confirmed coordinate bench decision of ITAT in ITA No.267/K/2009 "A" Bench, in the case of Virgin Creations Vs. ITO dated 15.12.2010. Tribunal has considered the decisions of Mumbai Bench of this ITAT in the case of M/s. Bansal Parivahan (India) P. Ltd. Vs. ITO in ITA No.2355/Mum/10 and of Ahmedabad Bench "B" in ITA No. 3983/Ahd/2008 for AY 2005-06 dated 03.12.2010. Tribunal considered the amendment made in the provisions of section 40(a)(ia) of the Act by the Finance Act, 2010 as curative and remedial in nature by holding as under: "After hearing the rival submissions and on careful perusal of the materials available on record, keeping in view of the fact that though the L....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urt that a proviso which is inserted to remedy unintended consequences and to make the provision workable, requires to be treated as retrospective in operation so that a reasonable interpretation can be given to the section as a whole. In the present case, the amount of tax deducted at source from the freight charges during the period 01/04/2005 to 28/02/2006 was paid by the assessee in the months of July and August 2006 i.e. well before the due date of filing of its return of income for the year under consideration. This being the undisputed position, we hold that the disallowance made by the A.O. and confirmed by the learned CIT(A) on account of freight charges by invoking the provisions of section 40(a)(ia) is not sustainable as per the ....