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TMI Blog2023 (6) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... to Section 40(a)(ia) r.w.s. First Proviso to Section 201(1) - HELD THAT:- Whether the 2nd Proviso to Section 40(a)(ia) of the Act is having retrospective effect from 01.04.2005 has also already dealt with by the Ld. CIT(A) with an affirmative view supported by the judgment passed by the Hon ble Delhi High Court in case of Dr. Jaydeep Sharma [ 2014 (11) TMI 720 - ITAT DELHI] - Thus, the order passed by the Ld. CIT(A) is found to be just and proper without any ambiguity so as to warrant interference. The same is, therefore, upheld. Decided against revenue. - I.T.A. No. 1743/Ahd/2018 - - - Dated:- 9-6-2023 - Smt. Annapurna Gupta, Accountant Member And Ms. Madhumita Roy, Judicial Member For the Appellant : Shri Mukesh Jain, Sr. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est of Rs. 11,85,187/- paid to M/s. Bajaj Finance Ltd., a Non-Banking Finance Company and therefore liable to deduct tax under Section 194A of the Act on interest payment. Since, the same was not done, the Ld. AO applied the provision of Section 40(a)(ia) of the Act and disallowed the same. 6. The case of the assessee is this that the 2nd Proviso to Section 40(a)(ia) of the Act r.w. Proviso to Section 201(1) of the Act prescribes no disallowance of expenses under Section 40(a)(ia) of the Act can be made unless the assessee has been treated as assessee in default under Section 201(1) of the Act for its failure to deduct tax at source from the payment made on account of interest. It was further the case of the assessee is this that in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case as the assessment year involved is A.Y. 2012-13. The appellant has furnished certificate as prescribed under proviso to section 201(1) r.w. rule 31 ACB of the I.T. rules before the A.O. and no adverse remarks regarding this has been made by the A.O. in the assessment order. In several decisions given by the High Courts and ITAT it is held that the second proviso to section 40(a)(ia) is having retrospective effect from 1.4.2005. In the case of Dr. Jay deep Sharma 52 taxmann.com 420 Delhi High court has held as under:- No disallowance would be made u/s 40(a)(ia), if recipient of payment in question has filed return of income and paid taxes in stipulated time. In view of the second proviso to section 40(a)(ia) having retrospective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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