TMI Blog2016 (2) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... h the expenditure relating to earlier period, actually TDS made in the assessment year under consideration and it is allowable in the assessment year under consideration in view of the second limb of sec.40(a)(ia). Thus in view of Provisos to section 40(a)(ia) and 40(a)(i) the deduction claimed by the assessee has to be allowed in the year in which the tax was actually paid by the assessee. - Decided in favour of assessee - ITA No. 1921/Mds/2015 - - - Dated:- 22-1-2016 - Chandra Poojari, AM And G. Pavan Kumar, JM For the Appellant : Shri Anurag Sahay, CIT For the Respondent : Shri R Sivaraman, Adv ORDER Per Chandra Poojari, Accountant Member This appeal by the Revenue is directed against the order of the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .37,300/- per se represent the prior period expenses, the same fall under the second limb of the provisions of sec.40(a)(ia), where the expenses are allowable on actual deduction and remittance of TDS. Since, the assessee has deducted and remitted the TDS on these expenses to the extent of ₹ 35,61,074/- only during the financial year 2009-10 and the same (Rs. 35,61,074/-) becomes eligible expenditure (deduction) in the present assessment year 2010-11. Accordingly, the CIT(Appeals) directed the A.O. to examine the assessee s claim of deduction and remittance of TDS on the above payments (prior period expenses) of ₹ 35,61,074/- and allow the same u/s.40(a)(ia) of the Act. Subject to verification, the prior period expenses to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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, [thirty per cent of] such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid :] [Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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