TMI Blog2010 (7) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee on this issue is allowed. With regard to the disallowance of expenditure amounting to ₹ 4 lakhs made by the AO - HELD THAT:- We find that the lower authorities have made only a token disallowance out of the expenditure claimed by the assessee looking into the reasonableness of the expenditure. Even before us, the learned counsel for the assessee could not state any good reason why the assessee could not produce bills, vouchers etc., before the authorities below in support of his claim. Hence, we find no reason to interfere with the order of the lower authorities. In view of the above, we confirm the findings of the CIT (A) and reject the grounds raised by the assessee on this issue. - SHRI N.R.S. GANESAN, J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of ₹ 32,52,535. The return was processed under section 143(1) on 28-6-2006. A notice under section 143(2) was issued on 22-8-2006. A detailed questionnaire dated 8-10-2006 was issued to the assessee calling for various details as mentioned in the questionnaire. While the case was in progress of scrutiny, the JCIT has given directions under section 144A on 11-12-2007 is received and filed. Basing on this direction, another letter dated 8-12-2007 was issued to the assessee fixing the date of hearing on 24-12-2007. On this date, neither the assessee nor the authorized representative of the assessee attended and no books of accounts and the information called for were furnished. The assessing officer disallowed subcontracts amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egorically found that the assessee deducted the TDS only in the month of March on the total amounts paid during the accounting year. Hence, it is submitted that as per the aforesaid amendment in the Finance Act, the lower authorities are not correct in disallowing the expenditure under section 40a (ia) of the Act. 5. On the other hand, the learned Departmental Representative submitted that the assessee did not produce any proof of payment either during the assessment proceedings or during the appellate proceedings to show that the assessee in fact paid the TDS so deducted before the due date of filing of the return. The decisions relied on by the learned counsel for the assessee are not applicable to the facts of the instant case as in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claimed without looking at the reasonableness of the expenditure. He prayed that the disallowance of the expenditure can be reduced to some extent. 7. We have heard the rival submissions of the parties and perused the material available on record. We are not inclined to agree with the contention of the learned counsel for the assessee that the intention of the legislature is not to subject the rigors of the S.40 [a](ia) of the Act to those cases where the payments are already made before the end of the previous year and disallowance can be made only on those cases where the amounts are payable at the end of the previous year. In other words, it is the contention of the assessee that only if the amount remains payable as at the end of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return and (2) those who have deposited the TDS with or without deduction, the tax deductible in the same previous year. Other cases where there is a deduction of TDS during any other month of the previous year but TDS paid to the Government after the end of the said previous year, such sum shall be allowed as deduction in computing the income of the previous year in which such tax has been paid. The co-ordinate bench of this Tribunal not considered the amendment of the Finance Act, 2008 which clarified that in a case where the TDS was deductible and was so deducted during the last month of previous year and paid on or before the due date of filing of return, no disallowance needs to be called for. Similarly, in any other case, no disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, the ground raised by the assessee on this issue is allowed. 9. With regard to the disallowance of expenditure amounting to ₹ 4 lakhs made by the assessing officer on account of non production of any bills, vouchers or evidence during the assessment proceedings. We find that the lower authorities have made only a token disallowance out of the expenditure claimed by the assessee looking into the reasonableness of the expenditure. Even before us, the learned counsel for the assessee could not state any good reason why the assessee could not produce bills, vouchers etc., before the authorities below in support of his claim. Hence, we find no reason to interfere with the order of the lower authorities. In view of the above, we confi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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