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TMI Blog2016 (7) TMI 1246X X X X Extracts X X X X X X X X Extracts X X X X ..... (2014 (9) TMI 576 - SUPREME COURT), the amendment brought in by Finance (No.2) Act of 2014 in Section 40(a)(ia), the same is held to be retrospective in nature; therefore, the amount to be disallowed u/s 40(a)(ia) should be restricted to 30% of the impugned amount. Thus, the assessee’s appeal is partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ec. 40(a)(ia)." 3. Brief facts are - the assessee is engaged in the stone quarry works manufacturing kapchi, greet metal from big stone rocks recovered from its mine by blasting process. Assessee employed services of a transport contractor one Shri Bablubhai Jaynaran Dube which explained as not a regular transport contractor; the work was assigned on requirement basis only. There is no written or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 2014, which reads as under:- "14.4 Accordingly, Section 40(a)(ia) of the Income-tax Act has been amended to provide that in case of non-deduction of tax at source or nonpayment of tax so deducted on payments made to residents as specified in section 40(a)(ia) of the Income-tax Act, the disallowance shall be restricted to 30% of the amount of expenditure claimed." 6.1 Ld. Counsel for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the hardship caused to the assessee, the amendment assumes the character of being clarificatory in nature and is retrospectively applicable. Reliance is placed on Five Members Constitution Bench of Supreme Court in the case of CIT vs. Vatika Township Private Limited, reported in (2014) 367 ITR 466 (SC), wherein it has been observed that in case the amendment is brought to remove the hardship cau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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