9911796707
TMI Blog2012 (7) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted and prayed that the amount of TDS payable as per Sec.94C of the IT Act, 1961 have already been deducted and paid on 25-5-2005. 2. At the outset, ld.AR has informed that the correct amount should be Rs. 20,02,500/- instead of the amount mentioned in the ground. Ld.AR has therefore pleaded to correct the amount noted in the grounds of appeal. 3. While framing the assessment u/s.143(3) vide order dated 29.11.2007, it was observed by the AO that certain payments have been made to sub-contractors amounting to Rs. 31,84,737/- without deduction of tax at source, hence contravening the provisions of section 40(a)(ia) of IT Act. The assessee-firm is in the business of building construction and estate developer. In compliance, it was submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .05, and as per amendment brought in section 40a(ia) vide Finance Act, 2008 with retrospective effect from 1.4.2005, the appellant gets relief of Rs. 9,68,087." 5. Having head the submissions of both the sides, we are of the view that now this issue is directly covered by a decision of Hon'ble Calcutta High Court pronounced in the case of CIT vs. Virgin Creations (Appeal No.302 of 2007 [GA No.3200/2011] order dated 23/11/2011), wherein it was held as under:- "The Court: We have herd Mr.Nizamuddin and gone through the impugned judgment and order. We have also examined the point formulated for which the present appeal is sought to be admitted. It is argued by Mr.Nizamuddin that this court needs to take decision as to whether section 40(A)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT Mumbai in the case of Bharati Shipyard Ltd. v. DCIT in ITA No.2404/Mum/2009 in order dated 12-09-2011 has taken a view that the amendment is prospective in nature and would apply accordingly. Respectfully following the decision of Hon'ble Calcutta High Court in the case of Virgin Creators (supra) the order of Ld.CIT(A) is not sustainable. Hence, this ground of assessee's appeal is allowed. The Assessing Officer is directed to delete the disallowance of Rs. 3,69,568/- as made u/s.40(a)(ia) of the Act."
6. Respectfully following the aforesaid decisions, since the TDS was deposited on 25/5/05, therefore, we hereby direct to delete the addition. Ground is allowed.
7. In the result, Assessee's appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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