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TMI Blog2016 (9) TMI 1660X X X X Extracts X X X X X X X X Extracts X X X X ..... s duly accounted for by the assessee in the books of account of the next year. Addition made by the AO and confirmed by the ld. CIT(Appeals) on account of alleged bogus sundry debtors is not sustainable - Decided in favour of assessee. Disallowance u/s 40(a)(ia) - payments of bus hire charges made by the assessee to five bus owners without deduction of tax at source - HELD THAT:- We restore the issue relating to the disallowance u/s 40(a)(ia) on account of payment of bus hire charges to the file of the AO for deciding the same afresh in the light of the decision of the Tribunal in the case of Abhoy Charan Bakshi [ 2016 (5) TMI 755 - ITAT KOLKATA] after verifying the claim of the assessee that the concerned recipients of the bus hire charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 is over charged and wrongly calculated and or is not applicable to the assessee's case hence the interest be deleted and or correctly computed. 2. We have heard the arguments of both the sides and also perused the relevant material available on record. Grounds No. 1 & 2 raised by the assessee in this appeal are not pressed by the ld. counsel for the assessee at the time of hearing before me. The same are accordingly dismissed as not pressed. 3. As regards the issue involved in Ground No. 3 relating to the addition of Rs.1,75,200/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of the alleged bogus damages, it is observed that in the balance-sheet filed along with his return of income for the year und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for by the assessee in the books of account of the next year. Keeping in view all these facts of the case, I am of the view that the addition of Rs.1,75,200/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of alleged bogus sundry debtors is not sustainable and deleting the same, I al low Ground No. 3 of the assessee's appeal. 5. As regards the issue involved in Ground No. 4 relating to the disallowance of Rs.9,00,000/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) under section 40(a)(ia) on account of payments of bus hire charges, it is observed that the payment on account of bus hire charges aggregating to Rs.9,00,000/- was made by the assessee to five bus owners amounting to Rs.1,80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s held that the second proviso to Sec.40(a) (ia) of the Act will apply in the present case and that applicability of the second proviso to Sec.40(a)(ia) of the Act which was introduced by the Finance Act, 2012 w.e.f. 1.4.2013 was retrospective in operation and was to apply w.e.f. 1-4-2005, being the date from which sub-clause (ia) of sect ion 40(a) was inserted by the Finance (No. 2) Act, 2004. The Hon'ble Delhi High Court in the case of CIT Vs. Ansal Land Mark Township ( I) Pvt. Ltd., in ITA NO.16012015 judgment dated 26.8.2015 has taken the view that the insert ion of the second proviso to Sec 40(a) (ia) of the Act is retrospective and will apply from 1.4.2005. Once it is held that the Assessee is entitled to the benefit of 2nd provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to call for the information u/s. 133(6) or 131 of the Act, for verification of the same". I, accordingly, restore the issue relating to the disallowance of Rs.9,00,000/- under section 40(a)(ia) on account of payment of bus hire charges to the file of the Assessing Officer for deciding the same afresh in the light of the decision of the Tribunal in the case of Abhoy Charan Bakshi (supra) after verifying the claim of the assessee that the concerned recipients of the bus hire charges have already offered to tax the entire amount in question in their returns of income. Ground No.4 is accordingly treated as allowed for statistical purposes. 7. The issue raised in Ground No. 5 relating to the levy of interest under sections 234B, 234C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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