9911796707
|
Home
Issues involved: Appeal against order of CIT u/s 263 of the Income Tax Act, 2006-07.
Summary: Issue 1: Assessment order challenged as erroneous and prejudicial to revenue. The assessee, a partnership firm, challenged the CIT's order u/s 263 of the Act, contending that the assessment order passed u/s 143(3) was not erroneous. The CIT proposed disallowing an amount u/s 40(a)(ia) for failure to deduct TDS. The CIT directed disallowance of the amount, considering it prejudicial to revenue. Issue 2: Disallowance u/s 40(a)(ia) for late TDS deduction and payment. The AO disallowed an expenditure under section 40(a)(ia) due to late deduction of tax and payment to the Government Account. The AO disallowed contract charges and professional fees under this provision. The assessee argued that TDS was paid before the due date for filing the return. The Tribunal held that the late deposit warranted disallowance of the expenditure in the relevant assessment year. Issue 3: Retrospective application of amended section 40(a)(ia). The assessee contended that the amended section 40(a)(ia) should be treated as retrospective from 1st April 2005. However, the Tribunal, citing a Special Bench order, held that the amendment by the Finance Act, 2010, did not have retrospective effect. The Tribunal rejected the assessee's argument based on this finding. The appeal filed by the assessee was dismissed by the Tribunal based on the above reasoning.
|
