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TMI Blog2019 (2) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... acting on behalf of the assessee but on the other hand was acting on behalf of the customers while processing payments through debit cards and credit cards. In the present case we further feel the said principle should be applied as HDFC would necessarily have acted as per law and it is not the case of the Revenue that the bank had not paid taxes on their income. It is not a case of loss of Revenue as such or a case where the recipient did not pay their taxes - decided against revenue. Addition made to the book profits u/s 115JB - Provision for gratuity as an ascertained liability as it based on actuarial valuation - Held that:- We find from the order of the Ld. CIT (Appeals) that he has given a categorical finding that the provision for g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction of TDS on bank charges deducted by the various banks. The book profit u/s 115JB of the Act as per the assessee's computation was ₹ 1,04,50,10,050/- but the same was determined at ₹ 1,04,54,13,356/- after making a disallowance of ₹ 4,03,306/- pertaining to the gratuity liability of the assessee on the ground that the same was unascertained liability. 2.1 The assessee's appeal before the Ld. CIT (Appeals) was allowed on both the grounds wherein both the disallowances were deleted and now the department is before the ITAT challenging the order of the Ld. CIT (Appeals) by raising the following grounds of appeal:- "1. On the facts and in the circumstances of the case, the Ld. CIT (A) has erred in law in deleting th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A perusal of the order of the ITAT in ITA No. 4943/Del/2015 for assessment year 2012-13 vide order dated 23.10.2017 shows that the finding of the ITAT with respect to the first issue being raised by the department is contained in Para 4 and 5 of the said order wherein the Coordinate Bench has relied on the judgment of the Hon'ble Delhi High Court in the case of CIT vs. JDS Apparels (P) Ltd. reported in (2015) 370 ITR 454 (Delhi) and has held that since the bank was making the payment to the assessee after making deduction of bank charges, there was no occasion for the assessee to deduct tax at source and, further, the bank was not acting on behalf of the assessee but on the other hand was acting on behalf of the customers while processing p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be preferred. In Maxwell's The Interpretation of Statutes, 12th edition (1969) it has been observed: "The strict construction of penal statutes to manifest itself in four ways: in the requirement of express language for the creation of an offence; in interpreting strictly words setting out the elements of an offence; in requiring the fulfillment to the letter of statutory conditions precedent to the infliction of punishment; and in insisting on the strict observance of technical provisions concerning criminal procedure and jurisdiction. 18. The aforesaid principles and interpretations can apply to taxing statutes. In the present case we further feel the said principle should be applied as HDFC would necessarily have acted as per law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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