SC approves HC ruling – Dis allowance u/s. 40(a)(ia) applies only to amounts ‘payable‘ as of 31st March and not to amounts already ‘paid‘ during the year
In CIT Vs. Vector Shipping Services(P) Ltd. Allahabad High Court has held that for disallowing expenses from business and profession on the ground that TDS has not been deducted, the amount should be payable and not which has been paid by the end of the year.
Against this order Revenue has preferred an Appeal with Honorable Supreme Court. Honorable Supreme Court has dismissed the special leave petition filed by the revenue and approved the judgment held by Honorable Allahabad High Court.
In other words Supreme Court also approves the special bench judgment in the case of Merilyn Shipping and Transport Ltd. In which it was held that dis allowance u/s. 40(a)(ia) applies only to amounts ‘payable‘ as of 31st March and not to amounts already ‘paid‘ during the year.
Text of the Supreme Court Judgment is as follows :-
SUPREME COURT OF INDIA
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (C)……
CC No(s). 8068/2014
(Arising out of impugned final judgment and order dated 09/07/2013 in ITA 122/2013 passed by the High Court Of Judicature At Allahabad)
COMMISSIONER OF INCOME TAX- MUZAFFAR NGR. Petitioner(s)
M/S VECTOR SHIPPING SERVICES(P) LTD.Respondent(s)
with appln. (s) for c/delay in filing SLP and c/delay in refiling slp and office report)
Date : 02/07/2014 This petition was called on for hearing today.
|CORAM :||HONORABLE THE CHIEF JUSTICE HONORABLE MR. JUSTICE MADAN B LOKUR HONORABLE MR. JUSTICE KURIAN JOSEPH|
|For Petitioner(s)||Mr. Mukul Rohatgi, Attorney GeneralMr. Rupesh Kumar, Adv.Mr. Sahil Tagotra, Adv.Mrs. Anil Katiyar ,Adv.|
UPON hearing the counsel the Court made the following
Heard Mr. Mukul Rohatgi, learned Attorney General, or the petitioner.
Delay in filing and refiling special leave petition is condoned.
Signature Not Verified
Special leave petition is dismissed.
Digitally signed by
|(RAJESH DHAM)COURT MASTER||(RENU DIWAN)COURT MASTER|
(Submitted by CA Prarthana Jalan – Analyzed by CA Sandeep Kanoi)