Sec 40(a)(ia) said deduction on payment of TDS is allowed in the year of payment

Last updated: 03 April 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
TDS deducted but not deposited within the time limit prescribed u/s. 201 of the Act. The same was deposited on 15.02.2006. The Ld. Counsel for the assessee could not contribute anything which supports his case. But after going through the records, we find that the tax so deducted was not paid during the previous year or on or before the due date specified in section 139(1) of the Act as authorised in section 40(a)(ia) of the Act by the Finance Act, 2008 with retrospective effect from 01.04.2005. Since the payment is made as on 15.02.2006, as authorised by the proviso to section 40(a)(ia) of the Act the deduction will be allowed in Assessment Year 2006- 07 and not in this year. Appeal of assessee is dismissed

Citation :
Sen Brothers Enterprises Pvt. Ltd. (PAN: AAGCS 9726 C) (Appellant)Vs. Assistant Commissioner of Income-tax,Circle-2, Durgapur (Respondent)