2013 (6) TMI 771 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of disallowance under section 40(a)(ia) of the Income Tax Act for assessment year 2008-09.

Summary:
The Revenue appealed against the deletion of disallowance made by the Assessing Officer under section 40(a)(ia) of the Income Tax Act for the assessment year 2008-09. The assessee, engaged in trading paper products, had initially filed a return declaring income of &8377; 9,37,400. The Assessing Officer disallowed an amount of &8377; 28,43,035 under section 40(a)(ia) after finding that TDS was deducted but not remitted to the Government account within the specified date. The CIT(Appeals) observed that the assessee had substantially complied with TDS provisions and that the amendment by Finance Act, 2010 was curative in nature and applicable retrospectively from 01.04.2005. The CIT(Appeals) held that the Assessing Officer's disallowance was not justified as the TDS was remitted within the statutory period, allowing the expenses. The Tribunal upheld the CIT(Appeals) decision, dismissing the Revenue's appeal.

In conclusion, the Tribunal upheld the CIT(Appeals) decision, dismissing the Revenue's appeal against the deletion of disallowance under section 40(a)(ia) for the assessment year 2008-09.