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2015 (3) TMI 564 - AT - Income TaxTDS on commission and interest expenses - assessee failed to pay the tax on or before the last day of the previous year - Tribunal deleted addition to held that the amendment to the provisions of Sec.40(a)(ia) whereby it was laid down that if the tax deducted at source is paid on or before the due date for filing the return of income u/s.139(1) no disallowance can be made u/s.40(a)(ia) is retrospective in operation and operates from 1.4.2005 though it is said to be retrospective only from 1.4.2010 - Held that:- Tax deducted at source by the Assessee which have admittedly been paid on or before the due date for filing the return of income for AY 07-08, have to be considered as having been paid within time and therefore the provisions of Sec.40(a)(ia) of the Act cannot be invoked to disallow the payments. As laid down in COMMISSIONER OF INCOME TAX, KOL-XI, KOL Versus VIRGIN CREATIONS [2011 (11) TMI 348 - CALCUTTA HIGH COURT] Amendment to the provisions of Sec.40(a)(ia) of the Act, by the Finance Act, 2010 is retrospective from 1.4.2005. Consequently, any payment of tax deducted at source during previous years relevant to and from AY 05-06 can be made to the Government on or before the due date for filing return of income u/s.139(1) of the Act. If payments are made as aforesaid, then no deduction u/s.40(a)(ia) of the Act can be made. Admittedly in the present case, the Assessee had deposited the tax deducted at source on or before the due date for filing return of income u/s.139(1) of the Act and therefore the impugned disallowance deserves to be deleted. - Decided in favour of assessee.
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