TMI Blog2010 (11) TMI 1033X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 because tax deducted on such amount in the month of March,2005 have been deposited on 25.4.2005 i.e., before the due date specified u/s.139(1) of I.T.Act,1961 as per the amended sec.40(a)(ia). The positon of law as amended w.r.e.f. 1.4.2005 clearly states as follows : 40(a)(ia) any interest, commission 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,- (A) in a case where the tax was deductible and was so deducted during the last month of the previous year, on or before the due date specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or allowance. Aggrieved the assessee appealed before the first appellate authority indicating that the learned Assessing Officer was not justified to restrict his finding to the assessment order only while rectifying a mistake on record as the wrong application of law was on a retrospective amendment to cover the issue in its totality. However, the learned CIT(A) confirmed the action of the Assessing Officer by indicating that the deduction made in the month of February was paid in the month of March, therefore, was as per law which was followed by the Assessing Officer to rectify the apparent mistake to the extent of allowing expenditure claimed u/s.40(a)(ia) amounting to ₹ 3,91,179 only. 3. The learned Counsel for the assessee ur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the material on record. We are of the considered view that the mistake apparent from record has to be rectified in its totality so as not to enable the authorities to partly misinterpret the intention of legislature making the issue debatable. The insertion of the amendment with retrospective effect made it clear that the amount outstanding of the monthly deductions of tax at source was to be paid under the mercantile system of accounting till the due date of filing of the return by the assessee was obviously till 31st October of the succeeding previous year entitled the assessee to claim the entire amount of expense in the impugned Assessment Year and not a part thereof indicating that the amount paid in March did not belong to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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