2017 (5) TMI 1627

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..... the second proviso to section 40(a)(ia) of the Act is retrospective in nature. The Ld. CIT(A) accordingly correctly allowed the appeal of the assessee and deleted the disallowance on this issue. - Decided in favour of assessee.
SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER Appellant By : Ms. Chanderkanta ORDER Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the Revenue against the order dated 10.11.2016 of the Commissioner of Income Tax (Appeals)-2 [hereinafter referred to as CIT(A)], Chandigarh. 2. The Revenue is aggrieved by the action of the CIT(A) in deleting the addition of ₹ 95,31,276/- which was made by the Assessing officer u/s 40(a)(ia) of the Income-tax Act, .....

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..... sion of the Tribunal, wherein, the Tribunal while relying upon the decision of the Hon'ble Delhi High Court in the case of 'CIT Vs. Ansal Land Mark Township (P). Ltd' [2015] 377 ITR 635 (Delhi) has held that the second proviso to section 40(a)(ia) of the Act is retrospective in nature. The Ld. CIT(A) accordingly allowed the appeal of the assessee and deleted the disallowance on this issue. 5. Being aggrieved by the above order of the Ld. CIT(A), the Revenue has come in appeal before us pleading that the Hon'ble Kerala High Court in the case of 'Thomas George Muthoot Vs. CIT' (ITA No. 278 of 2014 reported in (2015) 63 taxman. 99 (Kerala) has held that second proviso to section 40(a)(ia) of the Act inserted w.e.f. 1.4.2013 is prospec .....

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..... not absolve payer from the consequence of disallowance u/s 40(a)(ia) of the Act. We, further, find from the impugned order that the Chandigarh Bench of the Tribunal in the case of 'CIT Vs. Aman Creations' (supra) has followed the decision of the Hon'ble Delhi High Court in the case of 'Ansal Land Mark Township P. Ltd.' (supra). The Coordinate Bench has also considered another decision of the Hon'ble Kerela High Court in the case of 'Prudential Logistics & Transport Vs. ITO' dated 13.1.2014 in (2014) 51 Taxmman.com 426 (Kerela) wherein the Hon'ble Kerela High Court has held that the second proviso to section 40(a)(ia) of the Act is to be applied with prospective effect. The Coordinate Chandigarh Bench of the Tribunal after consid .....

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