2012 (5) TMI 737 - AT - Income Tax

Summary

Issues involved:
The judgment involves the interpretation of section 40(a)(ia) of the Income Tax Act regarding the late deposit of TDS by the assessee for rent, commission, and maintenance expenses for the assessment year 2008-09.

Summary:

Issue 1: Late deposit of TDS under section 40(a)(ia)
The Assessing Officer made an addition of Rs. 52,10,873 under section 40(a)(ia) due to late deposit of TDS by the assessee. The Commissioner of Income Tax (Appeals) deleted this addition, citing that the TDS was deducted and deposited before the due date of filing the return, thus not attracting disallowance under section 40(a)(ia).

Details:
The Assessing Officer noted late TDS deposits based on the Audit Report. The Assessing Officer calculated the amount to be added under section 40(a)(ia) as Rs. 52,10,873. The Commissioner of Income Tax (Appeals) considered the provisions of section 40(a)(ia) and relevant case laws to determine that the disallowance was not justified as the TDS was deposited before the due date.

Conclusion:
The Appellate Tribunal upheld the decision of the Commissioner of Income Tax (Appeals) and dismissed the Revenue's appeal, stating that the amendment to section 40(a)(ia) is retrospective and the TDS was deposited before the return filing date, thus no disallowance was warranted.