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2017 (4) TMI 906 - ITAT KOLKATADisallowance u/s 40(a)(ia) - scope of amendments - Held that:- Hon’ble Supreme Court in the case of Alom Extrusions Ltd ( 2009 (11) TMI 27 - SUPREME COURT ) will equally to the amendment to Sec.40(a)(ia) of the Act whereby a second proviso was inserted in sub-clause (ia) of clause (a) of Section 40 by the Finance Act, 2012, w.e.f. 1-4-2013. The provisions are intended to remove hardship. It was argued on behalf of the revenue that the existing provisions allow deduction in the year of payment and to that extent there is no hardship. We are of the view that the hardship in such an event would be taxing an Assessee on a higher income in one year and taxing him on lower income in a subsequent year. To the extent the Assessee is made to pay tax on a higher income in one year, there would still be hardship. The Hon’ble Delhi High Court in the case of CIT Vs. Ansal Land Mark Township (I) Pvt.Ltd.[2015 (9) TMI 79 - DELHI HIGH COURT ] has taken the view that the insertion of the second proviso to Sec.40(a)(ia) of the Act is retrospective and will apply from 1.4.2005. We therefore accept the submission on behalf of the Assessee are of the view that it would be sufficient if the order of the CIT(A) is set aside and the issue remanded to the AO for verification as to whether payees have included the receipts from the Assessee in their returns of income in terms of the decisions referred to above. In case the payees are not cooperating in providing details, the AO should call for the information u/s. 133(6) or 131 of the Act, for verification of the same. In this regard the Assessee should furnish all the details of assessment particulars of the recipients of payment from the Assessee to the AO to ensure that he does not have any difficulty in making the required verification. The other issues raised by the Assessee in its appeal are therefore left open without adjudication, for the present. - Appeal of the Assessee allowed for statistical purpose.
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