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2017 (4) TMI 1097 - AT - Income TaxDisallowance u/s 40(a)(ia) - whether the second proviso to section 40(a)(ia) inserted by Finance Act, 2012 w.e.f 01.04.2013 is applicable retrospectively and the assessee is eligible to claim benefit of same in assessment year 2010-11? - CIT-A allowed claim - Held that:- The second proviso to section 40(a)(ia) was inserted by the Finance Act, 2012 w.e.f 01.04.2013. The amendment brought in by the Finance Act, 2012 by way of insertion of second proviso to section 40(a)(ia), whether effective retrospectively or from the date mentioned in the Finance Act, 2012, has been debated in several cases before Tribunal & various Hon’ble High Courts. The Hon’ble Kerala High Court in the case of Prudential Logistics And Transports V/s. ITO (2015 (2) TMI 847 - KERALA HIGH COURT) has held that second proviso to section 40(a)(ia) giving concession to assessee from deducting TDS in case recipient of amount has already paid taxes on such amount would be available with effect from 01.04.2013 only. Subsequently, the Hon’ble Delhi High Court in the case of CIT V/s. Ansal Land Mark Township (P) Ltd [2015 (9) TMI 79 - DELHI HIGH COURT] held that second proviso to section 40(a)(ia) is declaratory and curative and has retrospective effect from 1st April, 2005. Various benches of the Tribunal have been consistently holding that the second proviso to Section 40(a) (ia) is applicable retrospectively. Thus, in view of the facts of the case and the decisions discussed above, we find no error in the order of Commissioner of Income Tax (Appeals) in deleting disallowance made by the Assessing Officer u/s 40(a)(ia) of the Act. - Decided in favour of assessee.
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