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2015 (5) TMI 43 - AT - Income TaxContravention of section 40(a)(ia) - Whether CIT(A), has erred in deleting the addition made by the AO on account of expenses not deductible - Held that:- A sum ₹ 10,66,200/- was paid by the assessee to the sub-contractors on which the assessee had deducted TDS but the same was deposited to the credit of the central government before the due date of filing of return under section 139(1) of the Act. The disallowance of the expenditure of ₹ 10,66,200/- was made by the AO invoking the provisions of section 40(a)(ia) on the ground that the amendment made by the Finance Act, 2010 which allowed payment of TDS within due date of filing of return under section 139(1) without inviting invocation of provisions of section 40(a)(ia) was prospective and applicable w.e.f. 1.4.2010 only, and not applicable for the year under consideration i.e. Asstt.Year 2005-06. The CIT(A) has allowed appeal of the assessee by following decisions of the Tribunal as quoted above in this order and held that the amendment was retrospective in nature. - payment of TDS has been made before the due date of filing of the return under section 139(1) of the Act, and therefore, the CIT(A) was fully justified in deleting the addition made by the AO by following the decisions of the Tribunal. Hence, we confirm the order of the CIT(A)
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