TMI Blog2012 (2) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) deleting the disallowance made by Assessing Officer by invoking the provisions of section 40(a)(ia) of the Act, as the assessee fails to deduct TDS from the payments made to contractors u/s. 194C of the Act. For this, revenue has raised following ground: That the Ld. CIT(A) has erred in deleting the disallowance of ₹ 22,39,414/- on account of section 40(a)(ia). 3. We have heard rival contentions and gone through facts and circumstances of the case. The brief facts are that the assessee is a contractor and running his business through two proprietary concerns namely, M/s. Nesha Construction and M/s. New Nesha Construction. During the course of assessment proceedings, the Assessing Officer noticed that M/s. New Nesha Constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince CIT(A) allowed the claim of the assessee by observing that the payments were made on account of labour charges for the months of April 2006 to May, 2007 but TDS was deducted for the entire labour payments in the month of March, 2007 and also paid before due dates specified u/s. 139(1) of the Act, we find no infirmity in the order as the present appeal is for Assessment Year 2007-08 and, therefore, will be governed by the amended provisions as per Finance Act, 2005. 4. Even otherwise, this issue is now covered by the decision of Hon ble Calcutta High Court in the case of CIT V Virgin Creations in ITAT No.302 of 2011, GA No. 3200/2011 dated 23.11.2011, wherein even amendment made by the Finance Act 2010 in section 40(a)(ia) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in the provisions of section 40(a)(ia) of the Act by Finance Act, 2010 is remedial and curative in nature and TDS paid on or before the due date of filing of return u/s. 139(1) of the Act, deduction in respect to the amount on which TDS is so paid, is allowable. In the present case the assessee has deducted TDS in March 2007 and paid in May, 2007 and pertains to AY 2007- 08, that means the TDS was paid before due date of filing of return u/s. 139(1) of the Act by the assessee. Hence, we allow the claim of assessee. In view of the above factual and legal position, we confirm the order of CIT(A) and this issue of revenue s appeal is dismissed. 5. In the result, appeal of revenue is dismissed. 6. Order pronounced in open court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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