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2017 (2) TMI 803 - AT - Income TaxDisallowance u/s 40(a) (ia) - non deposit of TDS within the statutory period in the government treasury - Retrospectivity of the second proviso to Section 40(a) (ia) - Held that:- As decided in Commissioner of Income Tax-1 Versus Ansal Land Mark Township (P) Ltd.[2015 (9) TMI 79 - DELHI HIGH COURT] the second proviso to Section 40(a) (ia) was inserted by the Finance Act 2012 with effect from 1st April 2013. The effect of the said proviso is to introduce a legal fiction where an Assessee fails to deduct tax in accordance with the provisions of Chapter XVII B. Where such Assessee is deemed not to be an assessee in default in terms of the first proviso to sub-Section (1) of Section 201 of the Act, then, in such event, “it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso Second proviso to Section 40 (a) (ia) of the Act is declaratory and curative in nature and has retrospective effect from 1st April 2005, merits acceptance. - Decided in favour of the Assessee.
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