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2014 (1) TMI 1330 - AT - Income TaxDeletion of disallowance u/s 40(a)(ia) of the Act – Requirement of depositing TDS before due date u/s 139(1) of the Act – Held that:- The provisions of Section 40(a)(ia) have been amended by Finance Act, 2010 to allow the deduction of expenses if the tax is paid before the due date of filing of the return, which has been done by the appellant - amendment to the provisions of Section 40(a)(ia) of the Act, by the Finance Act, 2010 is retrospective from 01.4.2005 - Consequently, any payment of tax deducted at source during previous years relevant to and from A.Y. 2005-06 can be made to the Government on or before the due date for filing return of income under section 139(1) of the Act. The decision in ITO vs. Shri Nem Chand Jain followed - The assessee deducted TDS which was not paid to the account of Central Govt. within the prescribed time, however, it was paid before the due date of filing the return specified in Section 139(1) of the Act - amendments in Section 40(a)(ia) is having retrospective operation – the addition u/s 40(a)(ia) of the Act cannot be made if the payment of tax deducted at source has been before the due date of filing the return of income for the year under consideration - payment of TDS has been made before the due date of filing of the return u/s 139(1) of the Act – thus, the CIT(A) was fully justified in deleting the addition made by the Assessing Officer – decided against Revenue.
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