TMI Blog2017 (4) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... on has not been upheld that provisions of section 40(a)(ia) are attracted only when the amount is payable. However, we note that there is no jurisdictional High Court decision on this issue. In such a situation we now have a Hon’ble Allahabad High Court decision which is in favour of the assessee as Hon’ble Apex Court in the case of CIT vs. Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME Court ] has to be followed. In the said decision the Hon’ble Apex Court has expounded that in case there are two views possible, the view in favour of the assessee should be followed. Thus Disallowance u/s 40(a)(ia) can be made only with respect to the sums which have remained unpaid. Since this aspect needs factual examination with reference to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. Act, 1961. 2. At the outset in this case learned counsel submitted that he shall be pressing only ground No. 3. Hence all grounds except ground No. 3 are dismissed as not pressed. 3. The said ground No. 3 relates to disallowance u/s 40(a)(ia). The payments amounting to ₹ 1,10,75,797/- were disallowed by the AO invoking the provisions of section 40(a)(ia). The addition was also confirmed by the learned CIT(Appeals). 4. Before us learned counsel of the assessee submitted that all the impugned payments were made upto the close of the financial year and very small amount remained outstanding. Hence learned counsel submitted that section 40(a)(ia) can be invoked only with reference to the amount that has remained outstanding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2005. The assessee respectfully submitted that amount payable in respect of aforesaid expenses were Rs. \ 5,91,377 / - only and the same may kindly be considered. On the above mentioned preposition assessee placed reliance on 1. ITA No. 477/Vizag/2008 Merilyn Shipping Transport -Vs- Additional Commissioner of Income Tax 2. (2013) 357 ITR 0642 (All)/ITA No. 122 of 2013 Commissioner of Income Tax -Vs.- Vector Shipping Services (P) 3. Judgment of Hon'ble Supreme Court of India dated 04/03/2015 in CC No(s) 8068/2014 of ITA No. 122/2013 4. Judgment of Hon 'ble Income Tax Appellate Tribunal, Mumbai Bench, dated 04/03/2015 in ITA No. 2293-2294/Mum/2013. 5. Upon hearing both the counsel and perusing the reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal High Court decision on this issue. In such a situation we now have a Hon ble Allahabad High Court decision which is in favour of the assessee. Revenue Department s petition for special leave to appeal has been dismissed by the Hon ble Apex Court by condoning the delay in filing the leave petition. In such a situation, in our considered opinion, the decision of Hon ble Apex Court in the case of CIT vs. Vegetable Products Ltd. 188 ITR 192 has to be followed. In the said decision the Hon ble Apex Court has expounded that in case there are two views possible, the view in favour of the assessee should be followed. Accordingly in absence of any jurisdictional High Court decision, we respectfully follow the decision of Hon ble Allahabad High C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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