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Issues involved: Appeal against order passed by Ld. CIT(A) for assessment year 2008-09. Disallowance of expenses on account of late payment of TDS without notice u/s 251. Disallowance of expenses on account of late payment of TDS not made by Ld. Assessing Officer. Appellate order enforcing appellant to file further appeal.
Dispute on Disallowance of TDS Payment: The appeal was filed against the order disallowing expenses due to late payment of TDS. The appellant contended that the tax was deposited before the due date of filing the return, which, according to established law, should not lead to disallowance. The appellant referred to various decisions supporting this argument. The Mumbai Tribunal's observation in the case of Bansal Parivahan India Ltd. highlighted that amendments made in the provisions by Finance Act, 2010 have retrospective application. The Tribunal emphasized that if the tax is paid before the due date of filing the return, disallowance cannot be sustained. Citing the legislative intention and remedial nature of the amendments, the Tribunal ruled in favor of the appellant, directing the AO to delete the disallowance of &8377; 7,43,955. Conclusion: After considering the arguments and relevant decisions, the Tribunal held that disallowance cannot be made if the tax deposits are made before the due date of filing the return as per section 139(1). As the dates of deposit were undisputed and mentioned in the remand report, the AO was directed to delete the disallowance amount. Consequently, the appeal was partly allowed in favor of the assessee. Judges' Details: Shri I.P. Bansal, Judicial Member and Shri N.K. Billaiya, Accountant Member.
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