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2015 (11) TMI 744 - AT - Income TaxTDS Sec.194C - disallowance u/s .40(a)(ia) - assessee has deducted the tax on payments made to sub-contractors but the same were paid belatedly in later years - Held that:- In this case, assessee has placed on record evidence that constituents has filed the returns of income and claimed TDS, whatever is deducted by the assessee which was also duly allowed. In view of this, there is no dispute that constituents have accounted for the incomes and also paid taxes accordingly. We are of the opinion that the provisions of amendment brought in Finance Act, 2012 are to be considered as clarificatory and as assessee has deducted tax and also paid though belatedly, we are of the opinion that provisions of section 40(a)(ia) can be liberally interpreted so as to exclude the amounts from the purview of the above section. A.O. is directed to allow the expenditure as claimed. See Deputy Commissioner of Income-tax, Circle 1, Udupi Versus Ananda Marakala [2014 (12) TMI 613 - ITAT BANGALORE] - Decided in favour of assessee.
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