40(a)(i)(a)

[murali Krishnamurthy]

There is a special bench of the Vishakapatnam Bench on the issue that this section is applicable only to the payments outstanding as at the year end and not for the payments which have been concluded. Further the Hon'ble AP High Court has issued " interim stay" on this order. Please indicate the meaning of this order and whether there are any other case law on this subject.

An early response will be greatly appreciated 

[Advocate Anumita]

Dear Mr. Krishnamurthy,

Did you go through the full order passed by AP HC? Would suggest if you would click on the link for your reference.

The Special Bench order that was passed by Vishkhapatnam Bench has become inoperative due to the reason of this grant of "interim stay" by HC. Before the matter reaches its final verdict, this judgment would not have any effect ,as the same cannot be referred as a precedent in any pending litigation (this particular issue) till it is finally decided by the HC.

http://asmlegal.blogspot.in/2012/12/interim-suspension-by-andhra-pradesh.html

Regards,

Anumita

[murali Krishnamurthy]

 What is your view, then on the comment made by Sri Subhash Agarwal?

[Advocate Anumita]

What is your take on this sir? As the view is supported by case laws, i do not have any comment to make as the interpretation given by Mr. Agarwal is convincing. But i am not sure how helpful it would turn out to be for an assessee in litigation before ITAT and C.I.T. (A) till this matter is finally decided.  ::)

[subash agarwal,Adv kolkata]

Due to huge pendency of cases, it takes a long time for High Courts to decide appeals after the appeals are admitted. In most cases, it takes 5-10 yrs. Do u mean ITAT & CIT(A)s will block the cases for such a long period till the issue is decided by the Hon'ble A.P High Court . I don't think so. There will only be two options left with them- either to follow or not to take cognizance of the Spl. Bench verdict.  I think taking the later course will not be justifiable when the issue has been interpreted by the highest court of the country and the Hon'ble High Court of Calcutta.
Why to doubt the wisdom of CIT(A)s  &  Hon'ble ITAT ? From my experience I can say, they pass justifiable orders when proper authorities are brought to their notice barring some exceptions.