Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 588 - ITAT KOLKATATDS u/s 194C - disallowance u/s 40(a)(ia) - whether the amendment made as above is prospective or retrospective w.e.f. 1.4.2005 when the provisions of Sec.40(a)(ia) were introduced? - Held that:- Reasoning of the Hon’ble Supreme Court in the case of Alom Extrusions Ltd (2009 (11) TMI 27 - SUPREME COURT) will equally to the amendment to Sec.40(a)(ia) of the Act whereby a second proviso was inserted in sub-clause (ia) of clause (a) of Section 40 by the Finance Act, 2012, w.e.f. 1-4-2013. The provisions are intended to remove hardship. It was argued on behalf of the revenue that the existing provisions allow deduction in the year of payment and to that extent there is no hardship. We are of the view that the hardship in such an event would be taxing an Assessee on a higher income in one year and taxing him on lower income in a subsequent year. To the extent the Assessee is made to pay tax on a higher income in one year, there would still be hardship. Hon’ble Delhi High Court in the case of CIT Vs. Ansal Land Mark Towship (I) Pvt.Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] has taken the view that the insertion of the second proviso to Sec.40(a)(ia) of the Act is retrospective and will apply from 1.4.2005 Disallowance of carriage expenses for want of vouchers - Held that:- As submitted that the vouchers could not be produced earlier because the issue was argued on legal grounds before CIT(A) and the counsel for the Assessee in the proceedings before the lower authorities did not think it fit to file the vouchers, though they were available. In view that the vouchers now sought to be filed by the Assessee as additional evidence is required to be admitted as additional evidence as they are material for deciding the issue in the appeal. Since, the additional evidence requires verification by the AO, deem it fit and proper to remand the issue to the AO for fresh consideration in the light of the additional evidence now filed. The AO will afford opportunity of being heard to the Assessee before deciding the issue.
|