2013 (2) TMI 743 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of addition of transportation expenses u/s 40(a)(ia) of the Act.

Summary:
The Revenue appealed against the deletion of an addition of Rs. 31,75,516 made on account of transportation expenses u/s 40(a)(ia) of the Act by the Ld. CIT(A)-XV, Ahmedabad. The Assessing Officer observed that the assessee had made payments to various sub-contractors but failed to deposit the TDS amount in the Government's Account within the prescribed time u/s 220(1) of the Act. The appellant contended that the TDS deduction was paid before the due date of filing the return of income u/s 139(1) of the Act, citing relevant judgments. The Ld. CIT(A) deleted the addition, relying on the decisions of the Culcutta High Court and the ITAT Ahmedabad, directing the A.O. to allow the expenditure and delete the addition made u/s 40(a)(ia) of the Act.

The Tribunal upheld the order of the Ld. CIT(A) as he provided relief to the assessee based on the precedents cited. The decision highlighted that if the TDS deduction is paid before the due date of filing the return of income, it does not attract the provisions of section 40(a)(ia) of the Act. Therefore, the Revenue's appeal was dismissed, and the order passed by the Ld. CIT(A) was upheld.