2012 (8) TMI 1078 - GUJARAT HIGH COURT

Disallowance of discount expenditure - Held that:- The vouchers were signed evidencing the receipt of the discount by them. Similarly, with regard to cash credit amount, the six depositors furnished requisite details to prove their identity, and showed the place of their residence. The loan was received through account payee cheques. Copies of bank statement was given and the details of Permanent Account Numbers were available. All these materials duly proved the genuineness of the transaction of loan as well as the creditworthiness of the depositors. Therefore, the Tribunal did not commit any error in confirming the findings of CIT(A).

Addition under section 40(a)(ia) the Tribunal noted that under the Finance Act, 2010, the section was retrospectively amended with effect from 01-04-2005. As provided that the tax to be deducted at source in respect of any interest, commission, etc. was required to be paid before the date specified in sub-section (1) of section 139. As the assessee had deducted the tax during the last month of previous years and the same was deposited to the credit of the Government in the month of May, 2005, i.e. before the due date specified in sub-section (1) of section 139 of the Act, the expenses relating to the commission paid were allowable.

Tribunal recorded its confirming findings on the basis of relevant material, which were proper and reasonable. No substantial question of law to be considered by this Court.