TMI Blog2014 (1) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... s withheld – Held that:- The TDS amount deducted should be paid on or before the due date specified in sub-section (1) of section 139, and if the amount is paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as deduction in computing the income of the previous year in which such tax has been deducted - this will also apply to deduction u/s. 40(a)(iii) – thus, the issue is remitted back to the file of the Assessing Officer - The Assessing Officer shall allow the salary expenditure if the amount of tax deducted at source has been paid on or before the date specified in sub-section (1) of section 139 – Decided in favour of Assessee. - IT Appeal No. 2299 (Delhi) of 2011 - - - Dated:- 21-5-2013 - R.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional grounds :- 1. The TPO has erred in law in rejecting 'Resale Price Method' for determination of the Arms Length Price, whereas in view of the nature of transactions and functions performed by the appellant, the said method should clearly qualify as the 'Most Appropriate Method.' 2. The TPO has erred in law in rejecting Resale Price Method as the Most Appropriate Method, without either explaining why the said method was not applicable in the instant case, or explaining how Transactional Net Margin Method adopted by him was the Most Appropriate Method. The above grounds are without prejudice to each other, and to the grounds of appeal filed earlier. 4. As regards the additional grounds of appeal, we have he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... salary payments, amount of Rs. 30,58,627/- was liable for TDS of Rs. 8,22,965/- which though deducted was deposited in the Government account much later i.e. on 30.10.2008. Hence, the Assessing Officer disallowed the claim of expenditure. 6.2 Before the DRP it was submitted by the taxpayer that Section 40(a)(iii) only stipulates that due taxes must be paid or deducted and does not stipulate the allowability of the expenditure with reference to any prescribed date for payment of the tax as is the requirement in section 40(a)(ia). According to the taxpayer, while the amended Section 40(a)(ia) stipulates a condition about payment of the TDS by the specified date in order to escape disallowance, Section 40(a)(iii) is silent on time for paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or brokerage, rent royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in sub-section (1) of section 139: Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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