TMI Blog2014 (11) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... e Finance Act 2010 allows additional time up to the due date of filing of the return in respect of even those instances where TDS has been deducted during the first eleven months of the previous year - the relaxation made by the amendment made under the Finance Act, 2010 brings the law in parity with the aforementioned situation and accordingly, for the TDS deducted all throughout the year, time is extended from payment till the filing of return – the order of the Tribunal is upheld – Decided against revenue. Allowability of depreciation in computer peripherals @ 60% - Held that:- CIT(A) rightly allowed the appeal of the assessee relying upon DCIT Vs Data Craft India Ltd. [2010 (7) TMI 642 - ITAT, MUMBAI] - Nothing was brought by revenue to take a different view – thus, the order of the CIT(A) is upheld – Decided against revenue. - ITA No. 86(Bang) 2014 - - - Dated:- 8-10-2014 - Smt. P. Madahvi Devi And Shri Abraham P. George,JJ. For the Petitioner : Dr. Shankar Prasad, JCIT For the Respondent : Shri Anjan Agarwal, GM, Finance ORDER Per Shri Abraham P. George, AM: This is an appeal filed by the revenue directed against an order dated 10-10-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of CIT Vs Virgin Creations (ITA No.302 of 2011 dated 23-11-2011) had held that amendment to Section 40a(ia) was having retrospective operation and such retrospectivity applied from 01-04- 2005 itself. It was held by their Lordship that remittances of deducted tax, if made before the due date of filing the return would be enough and Section 40a (ia) would not be attracted. The same view was taken by the Co-ordinate Bench of this Tribunal in the case of Shri Santosh Kumar Shetty Vs ACIT (ITA No.1194(B)/12 dated 26-07-2013. Co-ordinate Bench held that in view of the decision of the Hon ble Kolkata High Court in the case of CIT Vs Virgin Creations, (supra) the decision of the Special Bench in the case of Bharati Shipyard Ltd., Vs DCIT(2011)132 ITD 53 was no more good law. Revenue had carried the matter before the Hon ble Karnataka High Court and the Hon ble Karnataka High Court in the case of CIT Vs Sri Santosh Kumar Shetty (ITA No.590/2013 clubbed with ITA No.333/2012,457/2013,319/2009,242/2012,334/2012,12/2013 and 595/2013 judgment dated 15-07-2014), has confirmed the view taken by the Co-ordinate Bench and upheld the retrospectivity of the amendment made to Section 40a(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... caused immense hardship. The amendment under consideration made by the Finance Act 2010 relaxes the rigours of such provision by permitting payment of Tax till the filing of return as provided under sub-section (1) of section 139 of the Act. 16.2: One can notice that-the object of brining about provision of section 40(a)(ia) in the year 2005-06 was to augment compliance of TDS provision. TDS either not deducted or deducted but not paid in respect of payment of interest, commission or brokerage etc., before the expiry of time prescribed under sub-section (1) of section 200 and in accordance with the other provisions of Chapter XVII, such amount shall not be deducted in computing the 'income' chargeable under the head 'Profit Gains' of business or profession. Such provision starts with non-obstante clause which states that notwithstanding anything contained in sections 30 to 38 of the Income-tax Act, if the tax deducted at source is not paid within prescribed time (under section 200 (1)), no amount could be deducted while computing the income, under Chapter IV of the 'computation of business income'. 16.3: Thereafter, by way of amendment of Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... When plain interpretation frustrates the very legislative intent, the Court is expected to bear in mind the legislative intent from the language used in the statute with the help of permissible tools of interpretation of statute. 17: The core issue as to whether the amendment made by the Finance Act 2010 to section 40(a)(ia) of the Act is retrospective from the date of insertion of the provision i.e., 1st April, 2005 therefore needs to be answered in affirmation. It can be seen that the amendment made by the Finance Act 2010 allows additional time up to the due date of filing of the return in respect of even those instances where TDS has been deducted during the first eleven months of the previous year. The additional time till the due date of filing of the return, in case of TDS made during the last month of the previous year was already available by the amendment made by Finance Act 2008. Thus, it is apparent that the relaxation made by the amendment made under the Finance Act, 2010 brings the law in parity with the aforementioned situation and accordingly, for the TDS deducted all throughout the year, time is extended from payment till the filing of return. It is thus appare ..... X X X X Extracts X X X X X X X X Extracts X X X X
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