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2019 (4) TMI 1889 - AT - Income TaxDisallowance u/s. 40(a)(ia) - Scope of amendment - According to Ld. AR, 30% of the disallowance may be sustained in view of the amendment brought in by Finance Act No. 2 w.e.f. 01.04.2015 to section 40(a)(ia) which has been held to be curative in nature and hence, retrospective - HELD THAT:- As pursuant to the Tribunal’s direction the AO after examining the veracity of the vouchers submitted by the assessee against the payments made to various persons found out that payments have been made without deducting TDS and has found that there is no credence of the vouchers produced by the assessee so, he disallowed the expenditure claimed by invoking section 40(a)(ia) of the Act. CIT(A) confirmed the order of the AO. Before us, the Ld. AR taking note of the amendment brought in by the Finance Act No. 2 w.e.f. 01.04.2015 to sec. 40(a)(ia) of the Act prayed that 30% of the disallowance may be sustained and thus partial relief may be granted to the assessee. As held in the case of Punjab Infrastructure & Development Board Ltd. [2015 (9) TMI 1663 - ITAT CHANDIGARH] that though the aforesaid amendment has been brought w.e.f. 01.04.2015 it is curative in nature and so retrospective in operation and so following the ratio laid by the coordinate Bench of this Tribunal, we are inclined to allow the said prayer of the assessee, therefore, restrict the disallowance to 30%. The AO is directed to give relief in accordance to law as per the aforesaid direction.
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