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TMI Blog2012 (7) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... Sh. S.K. Upadhyaye, Sr. DR O R D E R PER S.V. MEHROTRA, A.M. These appeals filed by the assessee are directed against the orders of ld. CIT(A) dated 06.12.2010 for assessment years 2006-07 2005-06 respectively. 2. Grounds of appeal for A.Y. 2006-07(ITA No. 965/D/11): 1) That the ld. CIT(A) has erred both in law as well as in facts of the case in upholding a disallowance of Rs. 1,31,56,505/- made by the Assessing Officer u/s 40(a)(ia) of the Act. b) That the ld. CIT(A) has failed to appreciate that the impugned amount of Rs. 1,31,56,505/- was neither the income of the assessee nor expenditure of the assessee and that the entire amount stood diverted at source and the assessee had no obligation to deduct TDS u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee had claimed outsourcing expenses of Rs. 1,31,56,505/-. The AO required the assessee to furnish month wise and party wise details of expenses and also to furnish the reason as to why the TDS was not deducted on payment of outsourcing expenses. Since assessee did not furnish any reply, the AO disallowed the expenses of Rs. 1,31,56,505/- in view of section 40(a)(ia). Ld. CIT(A) confirmed the disallowance. At the outset ld. Counsel for the assessee relied on the decision of Spl. Bench in the case of Merilyn Shipping and Transports, 136 ITD 23 (Visakhapatnam) (SB), wherein it has been held that provisions of section 40(a)(ia) are applicable only to the amounts of expenditure which are payable as on 31st March of every year and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tood in its natural, ordinary or popular sense and construed according to its grammatical meaning. According to me, such construction would not lead to absurdity because there is nothing in this context or in the object of this statute to suggest to the contrary. It is a cardinal principle of interpretation that the words of a statute must be prima facie given their ordinary meaning, when the words of the statute are clear, plain and unambiguous then the courts are bound to give effect to that meaning. The literal rule of interpretation really means that there should be no interpretation of the statute, rather in other words, we should read the statute as it is without doing any violence to the language. In the present dispute before us, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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