The Hon'ble Calcutta High Court's judgement has now sealed an important escape route out of the most mischievous provision ever made in the Income Tax Act i.e. Section 40(a)(ia). There were already five provisions in the Income Tax Act viz., sections 201(1), 201(1A), 221, 271C, 271B to ensure strict compliance of TDS provisions. These provisions are containing provisions for strict penal actions having huge financial implications as well as provision for incarceration of the defaulters. The 100% disallowance of expenditure for the technical default of non-deduction of TDS of as low as 1% of the amount paid/ payable will prove to be the final nail in the coffin of the TDS defaulters. It will mean that for a small traffic violation of crossing a red light, one will be hanged by the noose. It will also mean flogging a horse many times over even after he is dead.
However, the mandarins of the North Block who were instrumental in bringing in such an illogical and draconian provision will now be able to nurse their "sadistic personality disorders" with a smile on their face.
Read the full news at:
http://subashagarwal.blogspot.in/2013/04/merilyn-shipping-sinks-in-kolkata.html
Merilyn Shipping & Transports sunk also in Guj. HC today.
OMG, what an irony!!!
Kindly provide the ita no or the name of the case.
Pawan Singla
singlapavan@gmail.com
TA No/s. 905/2012, 709/2012, 710/2012, 333/2013, 832/2012, 894/2012, 928/2012, 12/2013, 51/2013, 218/2013: Guj. HC
Thanx a lot. A wrong judgement has been finally corrected by two high courts.Lets us wait for the final erdict from the Apex Court.Till , such time , all asseessee again in trouble.