TMI Blog2015 (10) TMI 2744X X X X Extracts X X X X X X X X Extracts X X X X ..... he recipient are NBFC, therefore, not possible to not be assessed to tax, these payments were related for A.Y. 2009-10 and return for A.Y. 2009-10 already might have been filed by these NBFC by including these interests receipts as their income. Therefore, we do not find any reason to interfere in the order of the Ld. CIT(A).- Decided against revenue. - ITA No. 391/JP/2014 - - - Dated:- 9-10-2015 - Shri R.P. Tolani, J. Assessee by: Shri P.C. Parwal, CA Revenue by:Shri Raj Mehra, JCIT -DR ORDER R.P. Tolani, This is an appeal filed by the assessee against the order of the ld. CIT(A)-II, Jaipur dated 04-03-2014 for the assessment year 2009-10 wherein the solitary ground of the assessee is that the ld. CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court in case of CIT Vs. Vector Shipping Services (P) Ltd. 94 DTR 101/357 ITR 642 held that it is only the amount which is payable and not that which has been already paid by the end of the year that can be disallowed u/s 40(a)(ia). Against the said decision of Allahabad High Court, the department filed a Special Leave Petition (SLP) in the Supreme Court which was dismissed by the Supreme Court vide its order dt.02.07.2014. Thus, there are two views on this issue, one in favour of the assessee and other against the assessee. Considering these views, the various benches of Hon ble ITAT, after considering the various amendment made to section 40(a)(ia) from time to time to remove the undue hardship and considering the decision of Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to them in their income and paid tax thereon. The Delhi High Court in case of CIT Vs. Trans Bharat Aviation Pvt. Ltd. 320 ITR 671 has held that since deductee is a Government undertaking, the taxes may be presumed to have been paid lastly by the due date of filing of the return of income and, therefore, the liability of the assessee to pay interest on the amount which was to be deducted as TDS ends with the due date of filing of the return by the deductee. Therefore, considering the above amendment which is introduced to remove unintended hardship, the department may be directed to verify this fact and where finance companies has paid tax on such interest, no disallowance u/s 40(a)(ia) be made in the hands of the assessee. It is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is income. This has caused undue hardship to taxpayers, particularly where the rate of tax is only 1 to 10%. Hence, I propose to provide that instead of 100 percent, only 30% of such payments will be disallowed. From the above it can be noted that the amendment made by FA (No.2) Act, 2014 w.e.f. 01.04.2015 is to remove unintended and undue hardship and therefore this amendment should be give retrospective effect as per the various decisions stated above. It is also submitted that the Supreme Court in case of CIT Vs. Vatika Township Pvt. Ltd. 109 DTR 33 has held that legislations which modify accrued rights or which impose obligations or impose new duties or attach a new disability have to be treated as prospective unless the legislative in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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