THE INCOME TAX OFFICER Vs. D. UMAPATHY

JUDGEMENT

(1.) THIS appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) -IV, Chennai, dated 30.04.2014 and pertains to assessment year 2008 -09. The only issue arises for consideration is with regard to disallowance under Section 40(a)(ia) of the Income -tax Act, 1961 (in short 'the Act').

(2.) Shri S. Dasgupta, the ld. Departmental Representative, submitted that the CIT(Appeals), by following the order of the Tribunal in ITO v. Theekathir Press in I.T.A. No. 2076/Mds/2012 dated 18.09.2013, found that the assessee was to deduct tax only on the amount remaining payable on the last date of financial year. Since the amount of transport charges of Rs. 15,02,082/ - was already paid, the CIT(Appeals) found that there is no question of disallowance under Section 40(a)(ia) of the Act. According to the ld. D.R., tax has to be deducted on the amount paid by the assessee and not only the amount payable by the assessee.

(3.) ON the contrary, Shri K. Balasubramanian, the ld. counsel for the assessee, submitted that this Tribunal by interpreting Section 40(a)(ia) of the Act found that tax has to be deducted only on the amount remaining payable on the last date of financial year. Since the entire amount was already paid, according to the ld. counsel, there is no question of deducting any tax. The ld. counsel placed his reliance on the decision of this Tribunal in ITO v. Theekathir Press in I.T.A. No. 2076/Mds/2012 dated 18.09.2013.