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2016 (11) TMI 446 - ITAT MUMBAIEffect of retrospectivity of Section 40(a)(ia) - taxes paid to the credit of Central government before the due date of filing of return - Held that:- We have observed that the assessee has made payment to contractors and also on account of brokerage and professional fees which were made before 1-3-2007 i.e. within first eleven months of the financial year 2006-07 and taxes were deducted at source under Chapter XVII-B of the Act and admittedly the said taxes deducted at source were deposited to the Credit of Central Government by the assessee after the end of financial year 2006-2007 but before the due date of filing of return of income u/s 139(1) of the Act. It is an undisputed position that the assessee has duly paid the taxes deducted at source under Chapter XVII-B of the Act during the first eleven months of the financial year ended 31-03-2007 before the due date of filing of return u/s. 139(1) of the Act . Section 40(a)(ia) was amended by Finance Act, 2010 whereby under the amended provisions, the tax deducted at source under Chapter XVII-B of the Act if paid to the credit of Central government before the due date of filing of return u/s 139(1) of the Act, no disallowance u/s. 40(a)(ia) of the Act is called for . The decisions relied upon by the assessee supports the claim of the assessee, we hold that the assessee having made payment of tax deducted at source in the first eleven month of financial year ending 31-03-2007 to the credit Central Government before the due date of filing of return of income u/s. 139(1) of the Act, no disallowance can be made u/s 40(a)(ia) of the Act and accordingly we delete the disallowance made by the A.O. by holding that the amendment made by the Finance Act, 2010 to Section 40(a)(ia) of the Act is retrospective - Decided against revenue
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