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2014 (11) TMI 520 - AT - Income TaxAddition u/s 40(a)(ia) - Assessee contended that the delay in remitting the taxes to the Government were indeed paid before the due date of filing of return of income - Held that:- As decided in CIT Vs Virgin Creations [2011 (11) TMI 348 - CALCUTTA HIGH COURT] it has been held that amendment to Section 40a(ia) was having retrospective operation and such retrospectivity applied from 01-04- 2005 itself - remittances of deducted tax, if made before the due date of filing the return would be enough and Section 40a (ia) would not be attracted – in CIT v. Alom Extrusions Ltd. [2009 (11) TMI 27 - SUPREME COURT] - the TDS provision caused unintended inexplicable situation whereby the assessee who deducted the tax at source from the payments made by it for and on behalf of the Government and then if misses out the time limit of depositing the same with the Treasury within the time prescribed, the amount spent for its business purposes on account of the late deposit of such tax would result into disallowance of entire expenditure under section 40(a)(ia) - the amendment made by the Finance Act 2010 allows additional time up to the due date of filing of the return in respect of even those instances where TDS has been deducted during the first eleven months of the previous year - the relaxation made by the amendment made under the Finance Act, 2010 brings the law in parity with the aforementioned situation and accordingly, for the TDS deducted all throughout the year, time is extended from payment till the filing of return – the order of the Tribunal is upheld – Decided against revenue. Allowability of depreciation in computer peripherals @ 60% - Held that:- CIT(A) rightly allowed the appeal of the assessee relying upon DCIT Vs Data Craft India Ltd. [2010 (7) TMI 642 - ITAT, MUMBAI] - Nothing was brought by revenue to take a different view – thus, the order of the CIT(A) is upheld – Decided against revenue.
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