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2022 (8) TMI 144 - BOMBAY HIGH COURTDisallowance u/s 40(a)(ia) - Delayed deposit of TDS colected in government exchequer - scope of amended provision of section 40(a)(ia) - HELD THAT:- The proviso was originally inserted by Finance Act, 2008 with retrospective effect from April 1, 2005. The proviso was again amended by Finance Act, 2010 with effect from April 1, 2010. A bare perusal of the aforesaid proviso clearly indicates that the amendment is retrospective in nature which means that if the TDS has been deposited prior to filing of the return then there shall be no disallowance. The Supreme Court in the case of Commissioner of Income Tax Vs. Calcutta Export Company [2018 (5) TMI 356 - SUPREME COURT] has clearly observed that the amended provision of section 40(a)(ia) should be interpreted liberally and equitably and applied retrospectively from the date when section 40(a)(ia) with effect from assessment year 2005-06 so that an assessee should not suffer unintended and deleterious consequences beyond the object and purpose of the provision mandates. As in the present case there are concurrent findings of fact of the CIT(A) and the Tribunal that the subject TDS in the present case was deposited in the state exchequer before the due date of filing of return which is not disputed by the revenue. Also no material or facts have been brought before us even to suggest that the deduction has been granted twice to the assessee. Therefore, there cannot be any disallowance on this count. Assessing Officer could not have made a disallowance under section 40(a)(ia) in view of the retrospective nature of the proviso to the said section. We do not find any error apparent or perversity in the order of the Tribunal in confirming the order of the CIT (A) holding that no disallowance is called for under section 40(a)(ia) of the Act. - Decided in favour of assessee.
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