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2020 (9) TMI 859 - AT - Income TaxDisallowance u/s.40(a)(ia) - Failure to deduct TDS - Scope of amendment - whether the said amendment is having the retrospective effect or not? - HELD THAT:- We find that the issue involved in the present appeal has already been decided by the coordinate bench of the Tribunal in the case of Om Sri Nilamadhab Builders Pvt. Ltd [2019 (11) TMI 1373 - ITAT CUTTACK] wherein it is held that if a statute is curative of the previous law, retrospective operation is generally intended. The fact remains that this taxpayer has not tendered any details of the actual nature of expenditure. We therefore find no reason to disagree with the lower authorities' conclusion quoting assessee's failure in filing the relevant details. Coupled with this, the fact also remains that the legislature has itself amended Section 40(a)(ia) vide the Finance Act, 2014 w.e.f. 01.04.2015 restricting a disallowance made u/s 40(a)(ia) from 100% to 30% only. This tribunal's order in Dipak Parui vs. JCIT [2018 (7) TMI 2066 - ITAT KOLKATA] holds the above proviso inserted in the Act to be a curative one having retrospective effect. We therefore, direct the Assessing Officer to restrict the impugned disallowance to the extent of 30% only We direct the AO to restrict the 100% disallowance confirmed by the CIT(A) to the extent of 30% only taking into account the actual claim of the assessee in its profit and loss account. We order accordingly. Thus, the sole ground of appeal of the assessee is partly allowed.
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