9911796707
TMI Blog2012 (5) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... n, whereas the provisions of Section 40(a)(ia)is penal in nature and independently attracted even if income is estimated. 2. That the ld. CIT(A erred in estimating the profit from the business of the assessee relying on the rate of profit declared by the assessee without having any basis thereof." 3. At the time of hearing before us both the parties have conceded that the issues are fully covered against the revenue by Hon'ble Jurisdictional High Court in the case of CIT vs Virgin Creations in ITAT No.302 of 2011, GA No.3200/2011 dated 23.11.2011 in respect of addition made towards delay payment of TDS u/s 40(a)(ia) of the IT Act 4. After hearing the rival submissions and on careful perusal of materials available on record, it is obs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inception and various amendments made to the same including the suggestion made by the Industry in the form of representation in their pre-budget memorandum to the Hon'ble Finance Minister and by applying the decision of the Hon'ble Apex Court in the case of Alom Extrusions Ltd., has observed that "The provisions of section 40(a)(ia) as stood prior to the amendments made by the Finance Act 2010 thus were resulting into unintended consequences and causing grave and genuine hardships to the assessees who had substantially complied with the relevant TDS provisions by deducting the tax at source and by paying the same to the credit of the Government before the due date of filing of their returns u/s 139(1). In order to remedy this position and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch and Ahmedabad Bench, in the absence of a contrary view, except the other benches decision or any other High Court. Therefore, respectfully following the decision of the Coordinate Benches (supra), we allow the ground nos. 1 to 3 of the assessee's appeal." 5. We find that the above view of this Tribunal was confirmed by Hon'ble Calcutta High Court in the case of Virgin Creations (supra) by holding as under: "We have heard 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) (ia) is having retrospective operation or not. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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