Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 1005 - AT - Income TaxAddition for trade outstanding u/s 68 - Verification of the sundry creditors - Held that:- Assessing Officer is of the view that the assessee has tried to cover up unexplainable credits by splitting them under 38 names under the imprest account. However, the Ld. AR has submitted that all the entries appearing therein can be explained and correlated by the assessee, if given a chance to do so. Therefore, in the interest of justice, we restore the matter to the file of the Assessing Officer for fresh adjudication. Disallowance u/s 40(a)(ia) - retrospective amendment - Held that:- We find that the Agra Bench of the ITAT in the case of Rajiv Kumar Agrawal (2014 (6) TMI 79 - ITAT AGRA) wherein held a curative amendment to avoid unintended consequences is to be treated as retrospective in nature even though it may not state so specifically, the insertion of second proviso must be given retrospective effect from the point of time when the related legal provision was introduced - it cannot subscribe to the view that it could have been an "intended consequence" to punish the assessees for non-deduction of tax at source by declining the deduction in respect of related payments, even when the corresponding income is duly brought to tax - That will be going much beyond the obvious intention of the section - the insertion of second proviso to Section 40(a)(ia) is declaratory and curative in nature and it has retrospective effect from 1st April, 2005, being the date from which sub clause (ia) of section 40(a) was inserted by the Finance (No. 2) Act, 2004 – thus, the matter is remitted back to the AO for fresh adjudication
|