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2019 (1) TMI 1086 - DELHI HIGH COURTDisallowance u/s 40(a)(ia) - failure to deposit tax deducted at source on or before due date of filing of the income tax return - scope of amendment to second proviso to Section 40(a)(ia) - retrospectivity - Held that:- The assessee had filed documents in evidence on which remand report was obtained to show that M/s Arch Infrastructure Projects Nirman Private Limited in their return of income filed under Section 139 for the Assessment Year 2011-12 had included payment/receipts of ₹ 17,00,20,000/- in their total income and had paid taxes thereon. The said position was affirmed and accepted after reluctance by the Assessing Officer before the Commissioner of Income Tax (Appeals). Last date for filing of return for the Assessment Year 2011-12 was 30th September, 2011, which was Friday and a bank holiday. Banks were also closed on 1st and 2nd October being Saturday and Sunday. 2nd October was also a national holiday. On 3rd October, 2010 respondent-assessee had deposited tax at source accordingly. Assessee had also paid interest for the delay in deposit of TDS of two days. This is also not denied and disputed. In these circumstances, the Revenue should have exercised its discretion and accepted the order of the Tribunal given the peculiar facts of the present case for every infraction of provision, when there is substantive compliance, need not be made a subject matter of challenge before the High Court. At best the disallowance of expenditure under Section 40(1)(a) in this year would have been allowed in the next assessment year. In view of the aforesaid position, as the issue is already covered against the Revenue by decision of this Court in Ansal Landmark Township (P) Limited [2015 (9) TMI 79 - DELHI HIGH COURT], no substantial question of law arises for consideration.
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