2013 (2) TMI 721 - AT - Income Tax

Summary

Issues involved: Appeal against the order of ld.CIT(A)-XIV, Ahmedabad deleting the disallowance made u/s.40(a)(ia) of the Act for A.Y. 2009-10.

Summary:
1. The Revenue appealed against the order of ld.CIT(A)-XIV, Ahmedabad, challenging the deletion of disallowance of &8377; 54,66,397/- u/s.40(a)(ia) of the Act for A.Y. 2009-10.

2. The main issue was whether section 40(a)(ia) could be applied for disallowance of TDS deposited before the due date of filing the return. The TDS was deducted as per IT Act provisions and paid in June-2009, but the AO disallowed &8377; 54,63,397/- stating it should have been deposited before 31/03/2009.

3. The first appellate authority relied on the decision of Hon'ble Calcutta High Court in the case of Virgin Creations and allowed the claim.

4. The Revenue referred to the Gem Granites vs. CIT case for legal argument on the interpretation of the Statute, but it was deemed inapplicable as the High Courts had already interpreted section 40(a)(ia).

5. The issue was found to be covered by the decisions of Hon'ble Calcutta High Court and Hon'ble Gujarat High Court, stating that no disallowance should be made if TDS is deposited before the return filing due date. The Revenue's appeal was dismissed based on these decisions.

6. Consequently, the Revenue's appeal was dismissed.