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| The Tax Publishers2020 TaxPub(DT) 2721 (Del-Trib) : (2020) 084 ITR (Trib) 0396 INCOME TAX ACT, 1961
Section 40(a)(ia)
Since amendment made by Finance Act (No.2) Act, 2014 to section 40(a)(ia) with effect from 1-4-2015, is curative in nature and thus said provision is applicable retrospectively.
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Business disallowance under section 40(a)(ia) - Applicability of provision - Amendment made by Finance Act (No.2) Act, 2014 to section 40(a)(ia) with effect from 1-4-2015 whether retrospective in nature -
Issue was as regards disallowance of payments made (interest etc.) to a non-resident without deduction of tax at source. Held: Amendment is made by Finance Act (No.2) Act, 2014 to section 40(a)(ia) with effect from 1-4-2015, whereby disallowance of expenses under section 40(a)(ia) on account of non deduction of tax at source, has to be restricted to 30 percent of expenses as against 100 percent, is curative in nature and thus same has to be applied retrospectively. In view of aforesaid legal position, where assessee made payments without deducting tax at source, said payments were to be disallowed to extent of 30 percent only.
REFERRED : R. H. International v. ITO ITA No. 6724/Del/2018, dated 20-3-2019 ITAT, Jaipur Bench in the case of Rajendra Yadav v. ITO for the assessment year 2007-08 Order, dated 29-1-2016 : 2016 TaxPub(DT) 1193 (Jp-Trib) Smt. Kanta Yadav v. ITO ITA No. 6312/Del/2016, dated 12-5-2017 Umaxe Projects (P) Ltd. v. DCIT ITA No. 206/Del/2019 : 2019 TaxPub(DT) 7906 (Del-Trib)
FAVOUR : Partly in assessee's favour
A.Y. : 2014-15
IN THE ITAT, DELHI 'SMC-1' BENCH
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