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Issues involved: Appeal against order of CIT(A)-V, Baroda for assessment year 2007-2008 regarding disallowance u/s. 40 (a) (ia) of Rs. 48,29,076/-.
Summary: 1. The AO disallowed carting expenses of Rs. 48,29,076/- u/s 40 (a) (ia) of the IT Act due to non-filing of Form NO.15-I before the prescribed date of 30-06-2007 as per Rule 29-B of the IT Rules. Assessee claimed to have obtained declaration in Form NO.15-I from payees. CIT(A) noted that though the form was filed with delay, the assessee had obtained the declaration, hence no violation occurred. Addition was deleted by CIT(A). 2. The Tribunal upheld CIT(A)'s decision, stating that the compliance of Rule 29 D of the IT Rules was procedural. Assessee obtained requisite declaration, filed it with delay before the Commissioner's office and AO at assessment stage. As per section 194 (c) (3) of the IT Act, assessee complied with the proviso by obtaining declaration in prescribed form, thus no liability for TDS. The genuineness of the certificate was not doubted. Tribunal found sufficient compliance with the law and upheld CIT(A)'s decision to delete the addition. 3. The Tribunal concluded that since there was substantial compliance with the provisions of law, and considering the exemption given to the assessee in the proviso to section 194 (c) (3) of the IT Act, there was no justification to interfere with CIT(A)'s order. The appeal of the revenue was dismissed, confirming CIT(A)'s findings.
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