Landmark Judgment faces interim suspension
MERILYN SHIPPING & TRANSPORTS, VISHAKHAPATNAM
VS.
ADDITIONAL COMMISSIONER OF INCOME TAX
It has not been very long since, Hon'ble ITAT, Vishakhapatnam, Special Bench in the case of Merilyn Shipping & Transports, Vishakhapatnam vs. Additional Commissioner of Income Tax has passed a landmark Judgment pertaining to provision of sec- 40 (a) (ia) of the I.T. Act, 1961.
The question & the issue which was decided was,
" Whether Sec- 40 (a) (ia) of the Income Tax Act, 1961 can be invoked only to disallow expenditure of the nature referred to therein which is shown as 'payable' as on the date of the balance sheet or it can be invoked also to disallow such expenditure which become payable at any time during the relevant previous year and was actually paid within the previous year? "
It was held by the majority decision by the Hon'ble ITAT, Special Bench that,
"The provision of sec-40 (a) (ia) of the Act are applicable only to the amounts of expenditure which are payable as on the date 31st March of every year and it cannot be invoked to disallow which had been actually paid during the previous year, without deduction of TDS."
Revenue Department was not happy with the decision and hence, filed a petition u/s. 151 of the CPC before Andhra Pradesh High court. Hon'ble High court suspended the operation of the order passed by Hon'ble ITAT, Special Bench.
Granted the interim suspension.
..xxx..
Can i get the copy of this order. I urgently require it.
ReplyDeletePlease mail me at dhaval.desai26@gmail.com
i hope u have received the copy of the order which i have mailed in your given email.id !
DeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
DeleteThis comment has been removed by the author.
ReplyDelete