TMI Blog2018 (6) TMI 1798X X X X Extracts X X X X X X X X Extracts X X X X ..... IT vs. Ansal Landmark Township Private Limited [ 2015 (9) TMI 79 - DELHI HIGH COURT] has held that second proviso to section 40(a)(ia) is declaratory and curative in nature and has retrospective effect from 1.4.2005. On a conjoint reading of second proviso to section 40(a)(ia) and first proviso to section 201(1), it becomes graphically clear that if the payee has furnished his return of income under section 139 and has taken into account such sum paid by the payer for computing income in such return of income and has paid income tax thereon, then the payer cannot be treated as assessee in default. A fortiori, no disallowance under section 40(a)(ia) can be made in such circumstances. Adverting to the facts of the instant case, it is seen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeding to dispose them off by this consolidated order for the sake of convenience. Assessment Year-2011-12 2. The first issue raised in this appeal is against the confirmation of disallowance of ₹ 6,36,920/- made by the Assessing Officer under section 40(a)(ia) of the Act. The factual panorama of this issue is that the assessee is running a petrol pump. It paid a sum of ₹ 6,36,920/- to BPCL and claimed deduction for the same by way of debit to its Profit and loss account under the head of LFR Rent . The Assessing Officer noticed that the assessee did not deduct any tax at source from such rental payment. It was opined that the assessee was liable to deduct tax at source under section 194-I of the Act. In the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mark Township Private Limited (2015) 279 CTR 384 (Del) has held that second proviso to section 40(a)(ia) is declaratory and curative in nature and has retrospective effect from 1.4.2005. On a conjoint reading of second proviso to section 40(a)(ia) and first proviso to section 201(1), it becomes graphically clear that if the payee has furnished his return of income under section 139 and has taken into account such sum paid by the payer for computing income in such return of income and has paid income tax thereon, then the payer cannot be treated as assessee in default. A fortiori, no disallowance under section 40(a)(ia) can be made in such circumstances. 4. Adverting to the facts of the instant case, it is seen that the assessee paid a su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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