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2015 (10) TMI 1413 - AT - Income TaxDisallowance under section 40(a)(ia) - failure to deduct tax at source under section 194C and 194J and deposit the same with the Government within the prescribed time under section 200 - Held that:- The Agra Bench of the Tribunal in the case of Rajeev Kumar Agarwal Vs. ACIT [2014 (6) TMI 79 - ITAT AGRA] has held that "the provisions of Section 40(a)(ia), as they existed prior to insertion of second proviso thereto, went much beyond the obvious intentions of the lawmakers and created undue hardships even in cases in which the assessee's tax withholding lapses did not result in any loss to the exchequer". Therefore, the Tribunal held that insertion of second proviso is a curative amendment to avoid unintended consequences is to be treated as retrospective in nature. As both the lower authorities have not looked into the matter from this angle, we set aside the orders of the lower authorities and restore the matter to the file of the AO for ajudication of the issue afresh in light of the discussion made hereinabove, after allowing reasonable and proper opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purpose.
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