9911796707
TMI Blog1981 (5) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... n order. 2. The assessee is a private limited company. They made some payments by way of salary and commission to the directors and salesmen. During the accounting year 1972-73, ₹ 15,758 had been paid as commission and salary. The figure for the assessment year 1973-74 was ₹ 20,382 and for the assessment year 1974-75 ₹ 21,790. The commission payment was made as a percentage of the turnover. This was quantified only when the accounts were audited. Thus, for the accounting year 1972-73, the commission payments were credited or paid on 11-6-1973 and for 1974-75 and 1975-76 on 14-6-1975. The tax thereon which had to be deducted at source and paid to the treasury was effected a few days later. 3. The ITO found that there had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee submitted that the amendment came into effect only from 1-10-1975, whereas the accounting years concerned were a period prior to that date. The levy of penalty for default affects the substantive rights of the assessee and so, according to him, the law as it stand before 1-10-1975 would apply. He then submitted that there was in fact no default at all. The commission payable to the directors and employees could be ascertained only when the accounts are audited. Since the audit was completed their accounts were credited with the accounts due and the taxes payable immediately deducted and paid to the Government. So, in fact, there was no default at all. He further submitted that even if it is to be held that there was a delay, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils furnished, we find that the bulk of the payments for which tax should be deducted are commission payments. The amount of commission payable can be ascertained only when the accounts for the year are completed. Therefore, the payments necessarily have to be delayed till the correct accounts are drawn up. It necessarily follows that the assessee will have to wait till the auditors complete their audit. On facts, we find that since the accounts were made up, the assessee had credited the directors and salesmen with the commission amount payable to them. Further, they had also calculated the tax payable thereon and it had been deducted at source and paid to the Government. There is, of course, a few days delay even on this. But, we think th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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