Friday, 11 May 2012

S. 194C default does not result in s. 40(a)(ia) disallowance if TDS paid before ROI due date

ACIT vs. Shri M.K. Gurumurthy (ITAT Bangalore)


For AY 2008-09, the assessee made payments to contractors from April 2007 to February 2008. However, the TDS thereon was deducted (belated) in March 2008 and paid before the due date for filing the ROI. The AO disallowed the payments u/s 40(a)(ia) though the CIT (A), relying on Bapusaheb Nanasaheb Dhumal, allowed the claim on the ground that as the TDS was (belatedly) deducted in March 2008, it could be paid before the due date for filing the ROI. On appeal by the department, HELD dismissing the appeal:

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GAAR Not Applicable to Genuine Capital Market Transactions: Telangana High Court

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