2017 (8) TMI 1423 - HC - Income Tax

Disallowance of expenditure u/s. 40(a)(ia) - due date for payment into the account of Central Government - Held that - The Tribunal by the impugned judgment held that tax deducted at source was deposited, however same was belated. The Tribunal also held that the explanation to section 40(a)(ia) added on 1.4.2005 as held by this Court in case of CIT v. Omprakash R. Chaudhary reported in (2015 (2) TMI 150 - GUJARAT HIGH COURT) is to be applied retrospectively.

Summary

The Gujarat High Court dismissed the Tax Appeal by the Revenue against the Income Tax Appeal Tribunal's judgment. The Tribunal deleted the disallowance of expenditure under section 40(a)(ia) of the Act amounting to Rs. 88,35,163, stating that tax deducted at source was deposited but belated. The Court applied the explanation to section 40(a)(ia) retrospectively.