9911796707
TMI Blog2014 (5) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... cts in brief as emerged from the corresponding assessment order passed u/s.143 dated 26.12.2008 were that the assessee-firm is in the business of civil construction and structural work for industrial units. It was noted by the AO that the assessee-firm came into existence w.e.f. 01.10.2005. It is worth to mention that the firm has closed its accounts for that period as on 31st March, 2006. The AO has further noted that for the period from 01.04.2005 to 30.09.2005 it was a proprietorship concern of one Sri Dineshbhai Chunawala. There were two additions u/s.40(a)(ia), one was of Rs.20,01,907/- and other was of Rs.4,69,269/- totaling Rs.24,71,176/-. In respect of first one, it was noted by the AO that in respect of "labour charges" of Rs.20,01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e credit of the government account in the subsequent year. This is notwithstanding the fact that the appellant-firm did make an unsuccessful attempt to deposit the tax but could not do so in the absence of TAN at that relevant point in time. To this end, no discretion is available before the taxing authorities or even the judicial authorities to add and read additional words into a statutory order as would transgress the limits of such order and the Scheme. The statute is very clear and the test of reasonableness cannot be applied here. The object of all the rules of interpretation is to give effect to the object of the enactment having regard to the language used. The intention of Parliament in enacting section 40(a)(ia) can be gleaned fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order of Hon'ble Gujarat High Court pronounced in the case of CIT Vs. Standard Buildcon, 41 taxmann. com 155 (Guj.), wherein it was held that the amendment u/s.40(a)(ia) brought out by Finance Act, 2008 w.e.f. 1st April, 2010 which had retrospective effect, therefore, if the tax deducted is deposited by the assessee before the due date of filing of the return. The same is required to be given credit in that very assessment year. 4.2 From the side of the Revenue, learned Sr.D.R., Mr. O.P. Batheja appeared and placed reliance on an order of Hon'ble Gujarat High Court pronounced in the case of CIT Vs. Sikandarkhan N. Tunvar, 33 taxmann.com 133 (Guj). For the legal proposition, the provisions of Section 40(a)(is) would cover not only amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal back to learned CIT(A) for denovo consideration as per the directions. 6. Now we are left with the other portion of the addition of Rs.4,69,269/- which was in respect of alleged non-deduction of TDS in respect of the following parties. "1. Avon Fabrication Rs.70,684/- 2. Jagirshingh Contractor Rs.1,95,585/- 3. Payal Transport Rs.2,03,000/- Total Rs.4,69,269/- 6.1 The explanation of the assessee was that TAN was applied but the same was issued in the month of August, 2006; hence, the TDS was deposited thereafter only. However, the AO was not convinced and taxed the said amount in the hands of the assessee. 7. When the matter was carried before the First Appellate Authority, at the outset, we have been informed that the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It may be pertinent to state here that the firm has come into existence w.e.f. 1.10.2005 and before that, it was the proprietory concern of Shri Dinesh M Chunawala, who is now a partner in the firm. Copy of the assessment order in case of Shri Dinesh M Chunawala for the assessment year 2006-07 (period 1.04.2005 to 30.09.2005) is enclosed at pages 31 to 33 of the paper-book submitted before your honour. Since the concern was a proprietory concern in the first period, that is,1st April 2005 to 30th September 2009, no TDS was required to be made. Therefore, no disallowance can be made in the hands of the appellant-firm. In respect of Payal Transport, it is to submit that there is an opening balance of Rs.72,700/- which pertains to an earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X
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