2011 (10) TMI 755

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....s as a builder and promoter under the name and style "Vishwas Builders". It filed its return of income for the concerned asst. year on 31.10.2006 declaring therein a total income of Rs. 5,88,340/-. Subsequently, the case was selected for scrutiny by issuance of notice u/s 143(2) of the Act. The scrutiny assessment was completed u/s 143(3) of the Act vide order dated 24.10.2008. In the said assessment order, the AO had made certain additions to the returned income and arrive at the total income of Rs. 9,54,380/-. 2.1 Subsequently, the CIT proposed to revise the assessment dated 24.10.2008 u/s 263 of the Act. The CIT was of the view that the assessment order was erroneous in law and prejudicial to the interest of the revenue, as TDS has no....

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.... tax at source on payment of contract charges and professional fees and for delay in paying to Government Account the tax deducted subsequently on 31.3.2006. In fact, the Tax Deducted at Source has been paid on 18.8.2006 amounting to Rs. 1,01,100/- i.e. well before the due date for filing the return. iii) The learned CIT, Mangalore has overlooked the fact that, the appellant's case is squarely covered under the provisions of section 40(a)(ia) of the IT Act, 1961. iv) The learned CIT, Mangalore has overlooked the fact that, provisions of section 40(a)(ia) as amended by the Finance Act, 2010 with effect from 1st April, 2010 is remedial in nature, designed to eliminate unintended consequences which may cause undue hardship to tax payers.....

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....rovisions of section 40(a)(ia) of the Act. For the payment of contract charges, tax is to be deducted u/s 194C and for the payment of professional fees, tax is to be deducted under the provisions of section 194J. Section 194C specifies that any person responsible for paying any sum to any resident contractor for carrying out any work including supply of labour for carrying out any work, shall deduct tax at the rates prescribed at the time of credit of such sum to the account of the contractor or at the time of payment thereof, whichever is earlier. (Emphasis supplied). Similarly, section 194J, which deals with the payment of fees for professional or technical services, also lays down that deduction of tax shall be made at the time of ....