TMI Blog2018 (2) TMI 1928X X X X Extracts X X X X X X X X Extracts X X X X ..... te prescribed under Rule 31A of the Rules - HELD THAT:- One of the submission of the assessee is that it had filed form No.26Q as prescribed under Rule 31A, though belatedly. It is true that quarterly returns specified in Rule 31A have to be filed on or before 15th of the first month of the succeeding the quarter. However, in our opinion, this time limit cannot be construed so strictly to mean belated filing will automatically result in a disallowance u/s 40(a)(ia). Sub Section (6) of Section 194C of the Act clearly say that there is no need to deduct tax on sums credited or paid to a contractor engaged in plying, hiring or lease charges, if the payer, who is the assessee here, gets a declaration that former was owning ten or less goods car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt the Act ) r.w.Rule 8D of the Income Tax Rules, 1962 (herein after referred to as the Rules ), taking a view that assessee having not earned any dividend income, no disallowance could be made. Ld. Assessing Officer had applied Rule 8D and disallowed a sum of C28,90,419/- considering investments made by the assessee which could yield exempt income. However, ld. Commissioner of Income Tax (Appeals) taking note that assessee had not claimed any exempt income, deleted such disallowance, relying on the decision of Delhi Bench of the Tribunal in the case of DCM Ltd vs DCIT (in ITA 4467/2012, dated 01.09.2015). 4. We find that the view taken by the ld. Commissioner of Income Tax (Appeals) is in sync with the judgment of Hon ble Jur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in the case of ACIT Vs. Mohamed Suhail (ITA No.1536/Hyd/2014, dated 13.2.2015). 8. Ld. Commissioner of Income Tax (Appeals) after considering the contention of the assessee held that assessee having complied with Section 194(6) of the Act, non- compliance with Section 194(7) of the Act was not fatal. According to him, assessee could not be visited with the consequence of Section 40(a)(ia) of the Act. In other words, as per the ld. Commissioner of Income Tax (Appeals) failure to file quarterly return in form 26Q would not lead to a disallowance u/s.40(a)(ia) of the Act. He deleted the disallowance made by the ld. Assessing Officer. 9. Now before us, the ld. Departmental Representative strongly assailing the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue that quarterly returns specified in Rule 31A have to be filed on or before 15th of the first month of the succeeding the quarter. However, in our opinion, this time limit cannot be construed so strictly to mean belated filing will automatically result in a disallowance under Section 40(a)(ia) of the Act. Sub Section (6) of Section 194C of the Act clearly say that there is no need to deduct tax on sums credited or paid to a contractor engaged in plying, hiring or lease charges, if the payer, who is the assessee here, gets a declaration that former was owning ten or less goods carriages and also gave their PAN numbers. In our opinion, considering the facts and circumstances of the case, the issue requires a fresh look by the ld. Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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