Income Tax Appellate Tribunal - Mumbai
Reform Creations, Mumbai vs Department Of Income Tax on 13 February, 2014
IN THE INCOME TAX APPELLATE TRIBUNAL,
MUMBAI BENCH "D", MUMBAI
BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND
DR. S.T.M. PAVALAN, JUDICIAL MEMBER
ITA No. 6884/Mum/2011
Assessment Year: 2008-09
ITO 18(2)(4) M/s. Reform Creations
Room No. 109, Piramal 1/7, Krishna Krupa
Chambers Lalbaug Parel Vs. Gokhale Road (North)
Mumbai-. 400 012 Dadar West,
Mumbai.400 028
(Appellant) (Respondent)
Permanent Account No. :- AAIFR 8186 N
Assessee by : None
Revenue by : Shri B.P.K. Panda
Date of hearing : 13.02.2014
Date of Pronouncement : 21.02.2014
ORDER
PER DR. S.T.M. PAVALAN, JM:
This appeal filed by the Revenue is directed against the order of the Ld.CIT(A)-29, Mumbai dated 08.08.2011 for the Assessment Year 2007-08.
2. In this appeal, the Revenue has agitated the action of the Ld.CIT(A) in deleting the disallowance of Rs.64,59,515/- made by the AO under section 40(a)(ia) of the Income Tax Act. No one has appeared on behalf of the assessee despite the notice having been sent to the assessee well in advance. We, therefore, proceed to decide the appeal of the Revenue ex parte after considering the submissions of the Ld.DR and also perusing the orders of the authorities below.
3. Briefly stated, in the assessment framed, the AO noticed that on labour payments amounting to Rs.64,59,515/-, TDS of Rs.1,44,824/- had been deducted but was paid only in the month of June 2008. As the assessee did not comply with ITA No. 6884/Mum/2011 2 M/s. Reform Creations Assessment Year: 2008-09 the provisions of section 40(a)(ia) due to late payment of TDS, the AO disallowed the claim of the assessee. On appeal, the Ld.CIT(A) allowed the claim of the assessee as the payments are covered by the amendment to section 40(a)(ia). Aggrieved by the impugned order of the Ld.CIT(A), the Revenue is in appeal before us.
4. At the outset, it is pertinent to mention that it is not disputed that the assessee has paid the TDS on 29.05.2008 which is before the due date of filing the return. In this connection, it is relevant to state that the amendment made in the provision of section 40(a)(ia) vide Finance Act 2008 provides that w.e.f. A.Y. 2005- 06, in case of expenses on which tax deductible at source is deducted, the expenditure would be allowable if tax has been paid before the due date of filing of return of income u/s 139(1) of the Act. Since, the Ld.CIT(A) has correctly relied on the said provision for allowing the claim of the assessee, we do not find any justifiable reason to interfere with the said decision and thus the same is upheld.
5. In the result, the appeal filed by the Revenue is dismissed.
Order pronounced in the open court on this 21st day of February 2014.
Sd/- Sd/-
(SANJAY ARORA) (Dr. S.T.M. PAVALAN)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Mumbai, Dated: 21.02.2014.
*Srivastava
Copy to: The Appellant
The Respondent
The CIT, Concerned, Mumbai
The CIT(A) Concerned, Mumbai
The DR "D" Bench
//True Copy//
By Order
Dy/Asstt. Registrar, ITAT, Mumbai.