9911796707
TMI Blog2014 (4) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... opt some estimate - his estimation was reasonable Decided against Assessee. Enhancement of income vis-a-vis disallowance u/s 40(a)(ia) of the Act – Held that:- The decision in Teja Constructions Versus ACIT [2009 (10) TMI 593 - ITAT HYDERABAD] followed - 40(a)(ia) is applicable only in respect of TDS defaults when amount is “payable There is difference between the word ‘paid or payable the legislature used the word very carefully in section 40(a)(ia) - Sec. 40(a)(ía) has to be subjected to strict interpretation - Going by the rule of strict interpretation the default with reference to actual ‘payment’ of expenditure would not entail disallowance - Decided in favour of Assessee. - ITA No. 683/Mum/2011 - - - Dated:- 3-4-2014 - Sh. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directing the enhancement of income by Rs. 13, 95, 442 applying the provisions of Section 40(a)(ia) of the Act for non deduction of tax at source. 2. 2 It is submitted that the provisions of Section 40(a)(ia) of the Act do not get attracted when the book results are rejected and total income is estimated as a % of total income. It is submitted that the concession made by the authorized representative due to ignorance of law does not confer any jurisdiction on the revenue to assess an amount. In view of the above, the appellant prays that the disallowance made under Section 40(a)(ia) of the Act resulting into enhancement of income may kindly be deleted. The appellant hereby reserves the right to add to, alter or amplify, the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions and perused the material before us. We are of the opinion that there was a reasonable cause for not filing the appeal in time. Considering the case relied upon by the AR and the facts of the case, we are of the opinion that matter under consideration is a fit case for condoning the delay. Therefore, prayer filed by the assessee in this regard is accepted. 3. During the assessment proceedings, AO found that assessee had debited an amount of Rs. 2. 55 Crores on material and stores of Rs. 73. 36 lacs on transport-charges. Assessee did not produce supporting bills and vouchers in respect of these expenses. Invoking the provisions of section 145 (3) of the Act, AO held that books of accounts of the assessee were not complete, that same w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an the estimate made by the AO. DR submitted that estimate made by the AO was reasonable, that profit on earlier or subsequent years could be compared with the profit for the year under consideration without bringing the facts of those years. He referred to page 18 of the paper book. 3. 3. We have heard the rival submissions and perused the material before us. We find that assessee had not produced supporting documentary evidences during the assessment proceedings. In these circumstances, AO had to estimate the taxable income. We find that after issuing a show-cause notice and considering the submissions of the assessee, he estimated the income @ 7% of the turnover. We further find that during the year, assessee had received Rs. 14. 18 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Lal Banshidhar (229 ITR 229 ALL HC), Indwell Constructions (232 ITR 776 A. P. HC) Kenaram Saha Subhash Saha (116 TTJ (Kol) (SB) 289/8 DTR (Kol) (SB) (Trib) 124. DR submitted that deduction of tax was legal liability of the assessee, provisions of section 40A(ia) were deeming provisions, that if the TDS was paid in subsequent years same had to be allowed. In the rejoinder AR submitted that assessee had not claimed the TDS in subsequent years. 4. 2. We have heard the rival submissions and perused the material before us. We find that Hyderabad bench of the Tribunal Teja Constructions has decided the issue of non-deduction of TDS vis-a-vis rejection of books u/s. 145(3) of the Act, in case of a contractor, as under : The books of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
