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2020 (6) TMI 504 - AT - Income TaxTDS u/s 194H - Disallowance u/s. 40(a)(ia) - Commission payment - HELD THAT:- The perusal of the details of the commission paid by the assessee, reveals that out of the total commission which has been disallowed u/s 40(a)(ia), includes the amounts paid to Anuj Kumar, Surya Kumar, Mukesh Tyagi and Krishna Dayal which individually are below ₹ 10,000/- each and therefore we find force in the argument of the Ld AR that on those payments assessee was not required to deduct TDS u/s. 194H - same cannot be disallowed u/s 40(a)(ia) of the Act. We accordingly direct its deletion. As far as the amounts paid to other persons in the list are concerned, we find the payments to be in excess of ₹ 10000/- each. We find that Finance (No.2) Act has made amendment to section 40(a)(ia) of the Act w.e.f. 01.04.2015. Various benches of the Tribunals including the Delhi Benches of the Tribunal, have held the amendment made by Finance (No 2) Act to be curative in nature. We further finds the coordinate bench of the Tribunal in the case of R.H. International Vs. ITO [2019 (5) TMI 616 - ITAT DELHI] has held that disallowance u/s. 40(a)(ia) of the Act be restricted to 30% of the expenses paid as against 100% because amended provision is curative in nature and the provisions should be applied retrospectively. - Appeal filed by the assessee is partly allowed.
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