Diesels v. Commissioner Of Income Tax-2, Jalandhar' Decided The

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH ITA29)2012 (O&M)Date of decision:05.05.2015 The Commissioner of Income Tax, Karnal ..Appellant Versus. M/s Kurukshetra Darpan (P) Ltd. ...Respondent CORAMHONBLE MR. JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICEHON5BLE MR. JUSTICE G.S. SAANDHAWALI Present: Mr. Yogesh Putney, Advocate,for the appellant.Mr. Ravi Shankar, Advocate, |for the respondent. ee S.J. VAZIFDAR, A.C.J. (QRAL) This appeal was admitted on 28.01.2014 on the following substantial questions of law:- “(i) Whether under Section 40(a) (ia) of theIncome Tax Act, 1961, disallowance of theexpenditurepaymentof|which,thoughrequired deduction of tax at source, has notbeen made, would be confined only to thosecases where the amount remains payable tillthe end of the previous years or would includeall amounts which became payable during theentire previous year? (ii) Whether in the facts and circumstances ofthe case, the learned ITAT is right in law inallowing deduction of expenditure underSection 40(a) (1a) of the Income Tax Act, 1961in absence of deduction oftax at source by theassessee as held by the Hon’ble jurisdictionalHigh Court?” oOWe have bya separate order and judgement dated 29.04.2015 ina eroup of appeals the first of which is ITA-716-2009 in the case of|PM.S Diesels Vs Commissioner of Income Tax-2, Jalandhar' decided the applicability of Section 40(a) (ia) of the Income Tax Act, 1961 (in short the Act). By that judgement, we have decided the issues in favourof the revenue. Therefore, the questions of law raised in this appeal mustalso be decided in favour of the revenue. | 3Having said that, however, it would be necessary to remand thematter to the Tribunal for considering the facts of the case. For instance, oneof the contentions raised on behalf of the respondent/assessee is that thepayments in respect whereof tax was not deducted at source pertained to aperiod prior to coming into force of Section 40(a) (ia) of the Act. Furtherissue may also arise whether the payees had made payments of the TDS tothe credit of the government or not. The Tribunal would, therefore, decidethe case on merits in view of the law laid down by us inP.M_S. Diesels VsCommissioner of Income Tax-2, Jalandhar’scase (Supra). The appeal isaccordingly disposed of with a clarification that all the contentions on meritsare kept open. 4Needless to add that it would be open to the Tribunal to remand thematter either to the CIT (Appeals) or to the Assessing Officer if it thinks itNeCessdly. 05.05.2015Amodh (S.J. VAZIFDAR)ACTING CHIEF JUSTICE (G.S. SANDHAWALIA) |JUDGE