Amendment in section 40(a)(ia) is remedial and curative in nature and has retrospective effect

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INCOME TAX APPELLATE TRIBUNAL, DELHI

I.T.A. No. 1300/Del/2012 – A.Y. : 2008-09

Income Tax Officer  Vs.  Sh. Naresh Kumar

Only grievance of the Revenue is that the amendment brought in the Income Tax Act u/s. 40(a(ia) was only effective from 1.4.2010 and not retrospective in nature. However, we find that in a catena of case laws as mentioned, it has been held that the amendment in section 40(a)(ia) is remedial and curative in nature and has retrospective effect. In this case, admittedly, the TDS deducted was deposited before the date of the filing of the return and under such situation, there cannot be any disallowance u/s. 40(a)(ia). Thus we find that Ld. Commissioner of Income Tax (Appeals) has taken a correct view in the matter, which does not need any interference on our part. Accordingly, we uphold the same.