https://www.taxtmi.com/caselaws?id=263411 The HC held that the second proviso to Section 40(a)(ia), inserted by the Finance Act 2012 effective from 1 April 2013, has retrospective effect from 1 April 2005. This proviso creates a legal fiction deeming tax as deducted and paid when the resident payee files their return, provided the assessee is not an assessee in default under Section 201(1). Relying on ITAT Agra's decision, the court ruled that the proviso is declaratory and curative, allowing the assessee to avoid disallowance for failure to deduct TDS on payments made. Consequently, no substantial question of law arose, and the decision was in favor of the assessee. en-us Wed, 26 Aug 2015 00:00:00 +0530 Fri, 25 Jul 2025 11:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=263411 The HC held that the second proviso to Section 40(a)(ia), inserted by the Finance Act 2012 effective from 1 April 2013, has retrospective effect from 1 April 2005. This proviso creates a legal fiction deeming tax as deducted and paid when the resident payee files their return, provided the assessee is not an assessee in default under Section 201(1). Relying on ITAT Agra's decision, the court ruled that the proviso is declaratory and curative, allowing the assessee to avoid disallowance for failure to deduct TDS on payments made. Consequently, no substantial question of law arose, and the decision was in favor of the assessee. Case-Laws Income Tax Wed, 26 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=263411