Google+ Badge

Translate

What reforms are needed in our Direct taxation regim?

Follow me by Email

A GOOD CA IS A BOON TO BUSINESS

We give expert advice for your safe business

Followers

GOODS AND SERVICE TAX, INCOME TAX, FEMA FOREIGN EXCHANGE MANAGEMENT ACT, PREVENTION OF MONEY LAUNDERING ACT PMLA, VAT, EXCISE and CUSTOM CASES, DRI, DEBT RECOVERY TRIBUNAL, POLLUTION CONTROL BOARD, ESI, EPF, CIVIL AND CRIMINAL CASES, APPEALS TO TRIBUNALS AND HIGH COURT, SUPREME COURT, INTERNATIONAL COURT OF JUSTICE, FEDERAL COURT IN AMERICA ETC.

Blog Archive

Search This Blog www.cagauravdhall.com CA GAURAV DHALL LEADING CHARTERED ACCOUNTANT FIRM INDIA

Featured Post

New version of GSTR-4 offline tools (V2.1) is now available on GST portal

New version of GSTR-4 offline tools (V2.1) is now available on GST portal 10/04/2018 For preparing your GSTR-4 for the 4th...

Friday, April 6, 2012

S. 40(a)(ia) TDS amendment to give extended time for payment is retrospective


The assessee deducted tax at source from paid charges between the period 1.4.2005 & 28.4.2006 though it paid the TDS in July and August 2006. The TDS was deposited after the end of the FY though before the due date of filing of the return of income. The AO invoked s. 40(a)(ia) and held that as the TDS had not been paid on or before the last day of the previous year, the deduction was not admissible. The Tribunal allowed the assessee’s claim. On appeal by the department, the High Court had to consider whether the amendment to s. 40(a)(ia) by the FA 2010 w.e.f. 1.4.2010 to provide that the TDS has to be paid on or before the due date for filing the ROI was prospective or retrospective. HELD by the High Court dismissing the department’s appeal:

In Allied Motors 224 ITR 677 & Alom Extrusions 319 ITR 306, the Supreme Court held that the amendments to the aforesaid provision (s. 43B) have retrospective application. Also, in R.B. Jodha Mal Kuthiala 82 ITR 570 (SC), the Supreme Court held that a provision which was inserted the remedy to make a provision workable requires to be treated with retrospective operation so that reasonable deduction can be given to the section as well. In view of the authoritative pronouncement of the Supreme Court, this court cannot decide otherwise. Hence the appeal is dismissed.

0 comments: