TMI Blog2021 (8) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... wance u/s. 40(A)(ia) of the Act has to be restricted only to 30% of the expenses paid as against 100% because the amended provision made to section 40(a)(ia) by Finance (No 2) Act, 2014 is curative in nature and the same should be applied retrospectively. Inasmuch as no contrary decision is available with us, we are of the considered opinion that such a view consistently taken by the Tribunals has to be followed. With this view of the matter, we direct the Assessing Officer to restrict the disallowance to 30% of the amount paid in respect of which TDS should have been made. We accordingly, allow ground No. 1 partially. Disallowance of salary to the employees - HELD THAT:- As seen from the impugned order that in respect of some of these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Briefly stated, relevant facts are that the assessee is the proprietor of M/s. Krishna Consultants and is engaged in the business of recovery and collection agent on behalf of certain banks. He filed return of income on 25.02.2013 declaring income of ₹ 10,88,200/-. Assessment u/s. 143(3) of the Income-tax Act, 1961 ( the Act ) was, however, complete at an income of ₹ 2,05,43,440/- by making several additions. 3. Aggrieved by such additions, assessee preferred appeal before the ld. CIT(A) and by way of the impugned order, ld. CIT(A) granted partial relief to the assessee by deleting certain additions and remitting the amounts in respect of certain additions. In so far as this appeal is concerned, the relevant additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below is concerned, there is much to submit but the assessee concedes the same. However, assessee submits that under section 40(a)(ia), as amended by Finance Act, 2014 w.e.f. 01.04.2015, the disallowance of expenses on account of non deduction of TDS should be restricted to 30% of the expenses in view of the fact that the amendment made by the Finance Act (2) to section 40(a)(ia) is curative in nature and is, therefore, also applicable to the assessment year under consideration. He submits that though this amendment is w.e.f. 01.04.2015, but the judicial authorities held it to be curative in nature and retrospective. He placed reliance on various Tribunal orders in the cases of M/s. R.H. International Vs. ITO (ITA No. 6724/Del/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the matter, we direct the Assessing Officer to restrict the disallowance to 30% of the amount paid in respect of which TDS should have been made. We accordingly, allow ground No. 1 partially. 8. Now, coming to ground No. 2, the assessment order speaks that towards recovery sub-agents expense, the assessee incurred an expenditure of ₹ 1,30,71,097/-, but the assessee failed to furnish the details thereof. Assessing Officer, therefore, disallowed a sum of ₹ 1,30,71,097/- for non-compliance of section 194H and consequently disallowed it u/s. 40(a)(ia) of the Act. Learned CIT(A) noted that out of 144 employees in respect of whom the salary expense of ₹ 1,30,71,097/- was said to have been incurred, the ICICI Bank stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
