9911796707
TMI Blog2012 (4) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... cer that the income chargeable to tax has escaped income and a notice u/s. 148 of the Act after recording the reasons u/s. 147 of the Act was served upon the assessee on 22-02-2010. The reasoning given for reopening of the assessment reproduced as under:- "From the perusal of the return of income filed by the assessee it is seen that assessee company made payment to contractors and to professional and technical service. TDS was deducted on various dates from April 2004 to Feb 2005, but paid after the financial year i.e. 313.2005 i.e. assessee had remitted the TDS amount in govt. Account on 11.4.2005 and 6.4.2005. Particulars of head under which tax is deducted at source Amount of tax deducted at source Due date of remittance Dt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment completed by way of regular assessment by invoking the provision of section 147 of the Income Tax Act, 1961 and completing the assessment, commenced under invalid exercise of powers u/s. 147 of the Act. 2. The Learned Commissioner of Income Tax (*Appeals) erred in fact and in law in confirming the action of AO in making disallowance u/s.40(a)(ia) amounting to Rs. 3,69,568/- Particulars Due date of remittance Date of payment Amount disallowed (Rs) Contractor/Sub contractor 31/03/2005 11/04/2005 50,168 Professional 31/03/2005 06/04/2005 3,19,400 3,69,568 3. The Learned Commissioner of Income Tax (Appeals) erred in fact and in law in charging interest u/s.234B of the Income Tax Act, 1961. 4. Le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and courts cannot give it "retrospective effect" except in limited circumstances where, say, the amendment makes explicit what was earlier implicit or where the amendment was to remove unintended consequences in the existing provision and to make it workable. A provision giving relief cannot be regarded as retrospective only because the original provision caused hardship to the assessee. S.40(a)(ia) caused "intended difficulty" with the object of discouraging non-compliance with the TDS provisions. A partial relaxation in its rigor, inserted with prospective effect, cannot be treated as "retrospective'. In view of this, disallowance of Rs. 3,69,568/- u/s. 40(a)(ia) in respect of payments in months of January & February, 2006, tax deducted ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
