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2010 (9) TMI 552 - ITAT, MUMBAIDisallowance u/s 40A(3) - Cash payment exceeding Rs. 20,000 - the relevant entries noted by the Assessing Officer as expenditure incurred by the assessee in cash in the sums exceeding Rs. 20,000 were actually in respect of amounts received by the assessee in cash on account of freight charges - the matter is restored back to the file of the Assessing Officer with a direction to verify the claim of the assessee that the relevant entries are on account of cash receipts and not cash payments from the actual record and allow proper relief to the assessee on the basis of such verification Regarding disallowance of Rs. 8,06,64,465 u/s 40(a)(ia) - It is observed that tax at source @ 1.12 per cent was deducted by the assessee from the freight charges during the period 1-4-05 to 28-2-06 and the same was paid in the months of July and August, 2006 - For the said delay, the assessee was liable to pay interest under section 201(1A) and the Government thus was getting compensated for the delay on the part of the assessee to pay the tax deducted at source on its behalf by the assessee - The provisions of section 40(a)(ia) as stood prior to the amendments made by the Finance Act, 2010 thus were resulting into unintended consequences and causing grave and genuine hardships to the assessees who had substantially complied with the relevant TDS provisions by deducting the tax at source and by paying the same to the credit of the Government before the due date of filing of their returns under section 139(1) - Decided in the favour of assessee
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