Itta/631/2014 Of The Commissioner Of Income Tax (Tds) v. M/S. Andhra Bank

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 631 of 2014 DATED:15.10.2014 Between:The Commissioner of Income Tax (TDS),Hyderabad. And … Appellant M/s. Andhra Bank,Hyderabad. ….Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR Judgment:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) We have heard Mr. S.R. Ashok, learned Senior Counselappearing for the appellant and have gone through the impugnedjudgment and order of the learned Tribunal. The learned Tribunal has correctly held that the amendmentto Section 17(2)(ii) in the Finance Act, 2007 which was broughtinto force with retrospective effect from 1.4.2002 could not havebeen foreseen by the assessee for deducting tax at source whilemaking payment of salary. In the aforesaid circumstances, taxwas to be deducted at the time when the amount was paid. Butwhen this provision was not brought into the statute book at thattime, there could not be any compliance. However, as soon as itis detected, the assessee has started deducting tax at source,which is a prerequisite from the financial year 2007-08. We, therefore, do not find any error in the impugnedjudgment of the learned Tribunal. The appeal is accordinglydismissed. Consequently, the miscellaneous applications, if anypending, shall also stand closed. No order as to costs. __________________ K.J. SENGUPTA, CJ _________________ SANJAY KUMAR, J