TMI Blog2017 (5) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... efit of the above provision and the transportation charges of ₹ 10,34,600/- are allowable as deduction from the income for the purposes of computing income chargeable to tax under the head, "Profits and gains of business or profession" from income. Accordingly, the impugned order dated 15.3.2016 (Annexure-5) and the Assessment Order dated 31.12.2014 are quashed in so for they disallow the transportation charges to be deducted from the income of the petitioner for computing its taxable income. - Decided in favour of assessee. - Writ Tax No. 597 of 2016 - - - Dated:- 12-5-2017 - Hon'ble Pankaj Mithal And Hon'ble Vinod Kumar Misra, JJ. For the Petitioner : Amitabh Agarwal,Nidhi Singh For the Respondent : S.C.,Piyush ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the notice given under Section 263 only one ground to the effect that the receipts of the petitioner disclosed as ₹ 20,18,523/- do not match with the total receipts of ₹ 75,46,235/- as per Schedule-2 of the ITR of the relevant year, therefore, the revisional authority was not empowered to pass any order on any other ground other than that taken in the notice. The other argument raised by the petitioner is in respect of the transportation charges of ₹ 10,34,600/- that after making the necessary deduction of TDS, the same was deposited subsequently on 3.9.2009 and, therefore, in view of the amended provisions of section 40(a)(ia) of the Act as amended vide Finance Act 2010, the aforesaid transportation charges are allowab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order dated 31.12.2014, apart from other things, holding that as the petitioner failed to deduct TDS under section 194(c) of the Act on the transportation charges paid to one transporter, Anand Kumar Agarwal and deposit the same, petitioner is not entitle for any deduction in respect of the same for the purposes of computing the taxable income. There is no dispute that the TDS on the aforesaid transportation charges were deposited by the petitioner subsequently on 3.9.2009. The return for the relevant year was filed by it on 29.9.2009 whereas the last date for filing it, was 30.9.2009. In other words, TDS was deposited before the filing of the return and the expiry of the last date for filing of the return. Section 40 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1) of Section 139 shall be substituted; (b) for the proviso, the following proviso shall be substituted, namely:- Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of Section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. The aforesaid amendment allowed the benefit of the deduction of the aforesaid amount provided the TDS is deducted and deposited before the date specified in sub section (1) of section 139 meaning thereby the last date for filing of the return of the relevant assessment year i.e. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve in nature. In view of the above decisions to which no contrary decision has been filed except for stating that both the decisions are subject matter of appeal before Supreme Court, we are of the opinion that the amendment brought about in Section 40(a)(ia) is not only has limited retrospectivity but complete retrospectivity and would be applicable to the assessment year 2009-10 also to which the instant case belongs. In view of the above, as the petitioner has deposited the tax deducted at source on 3.9.2009 before the expiry of the last date for the filing of the return under Section 139(i) of the Act i.e. 30.9.2009, he is entitle to the benefit of the above provision and the transportation charges of ₹ 10,34,600/- are allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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