TMI Blog2012 (8) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007-08 arises out of the order of the Commissioner of Income-tax (Appeals)-XXI, New Delhi. The grounds of appeal raised by the assessee are reproduced as under:- 1. That the Order of the learned Commissioner of Income Tax (Appeals) (CIT(A) is bad in law and on the facts of the case. 2(a). That the learned CIT(A) has erred in confirming the disallowance of expense of Rs.2,024,455/- u/s 40(ia) of the Income Tax Act by wrongly interpreting the provisions of Income Tax Act and disregarding the facts on record. (b) On the facts and circumstances of the case the provisions of the section 40(ia) are not applicable, as it only prohibits the disallowance when the tax has not been deducted at source and not where tax has been deducted bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at proportionate disallowance of Rs.15,75,239/- should have been made. 4. The learned CIT(A) on examination of the contention of the assessee observed that there was no scope for making proportionate disallowance under sec. 40(a)(ia) on the ground that section clearly applies where there is lower deduction of tax and as such tax has not been paid before the due date, disallowance has to be made. When tax auditor has pointed out the figures in 3CD report and out of the same, a portion had been added back, the same provision is attracted on the remaining part also. Therefore, there was scope of making proportionate disallowance. The learned CIT(A) accordingly upheld the disallowance made by the AO. 5. Before us, the learned AR of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as quantified the amount which is in violation of provisions of sec. 40(a)(ia). Therefore, the learned CIT(A) is justified in confirming the disallowance. She also submitted that there is no concept of allowance of deduction on proportionate basis as suggested by the learned AR of the assessee. 6. We have heard both the parties and gone through the material available on record. We have also gone through the Tax Audit Report in Form No.3CD placed at Pages 20 to 49 of the Paper Book. Annexure-XIV of the Tax Audit report gives the details of tax deductible under various sections of the Act. Page 1 of Annexure-XIV gives the details of payments on which tax has not been deducted at all. The total amount of expenditure is at Rs.7,32,827/-. Page ..... X X X X Extracts X X X X X X X X Extracts X X X X
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