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TMI Blog2022 (1) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... dabad Tribunal in the case of Electronic Instrumentation Control Pvt. Ltd. [ 2019 (12) TMI 141 - ITAT AHMEDABAD] has held that the amendment brought under the provisions of section 40(a)(ia) of the Act by the Finance Act (No. 2) 2014 is applicable retrospectively. Thus, in view of the above provisions, the 100% of the expenses incurred by the assessee without incurring the TDS cannot be disallowed. Rather disallowance shall be restricted to the tune of 30% only of such expenses. Accordingly, we direct the AO to restrict the disallowance to the tune of 30% of the interest expenses, as discussed above, incurred by the assessee. Hence, the ground of appeal of the assessee is partly allowed. - ITA No. 1499/AHD/2015 (Asstt. Year: 2009-10) - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal. 3. The only issue raised by the assessee is that the learned CIT (A) erred in confirming the order of the AO by sustaining the addition of ₹ 15,44,543.00 on account of non-deduction of tax under section 194A read with section 40(a)(ia) of the Act. 4. The facts in brief are that the assessee in the present case is a joint-venture and engaged in the business of road development/construction. The assessee in the year under consideration has paid interest of ₹ 15,44,543.00 to SREI Infrastructure Private Ltd which was claimed as deduction in the profit and loss account. However, the assessee failed to deduct the TDS under the provisions of section 194A of the Act on the payment of such interest expenses. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the provision of section 40(a)(ia) of the Act, the disallowance has to be restricted to the tune of 30% in respect of the expenses on which TDS was not deducted by the assessee. Such amendment was retrospective as held by the Delhi Tribunal in the case of Muradul Haque vs. ITO reported in 184 ITD 58 wherein it was held as under: We find that Finance (No.2) Act has made amendment to section 40(a)(ia) of the Act w.e.f. 1-4-2015. Various benches of the Tribunals including the Delhi Benches of the Tribunal, have held the amendment made by Finance (No 2) Act to be curative in nature. We further finds the coordinate bench of the Tribunal in the case of R.H. International (supra) has held that disallowance u/s. 40(a)(ia) of the Act be rest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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