https://www.taxtmi.com/caselaws?id=337092 Disallowance under section 40(a)(ia) for non-deduction of tax on discounts to distributors was held unsustainable where the assessee acted under a bona fide belief that no TDS was required and the recipients had already paid tax on the corresponding income. The Tribunal treated the second proviso to section 40(a)(ia) as curative and declaratory, and therefore retrospectively applicable. Relief was made contingent on verification that the distributors had discharged their tax liability, and the matter was remanded for that limited factual inquiry. en-us Mon, 24 Oct 2016 00:00:00 +0530 Tue, 03 Jan 2017 12:15:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337092 Disallowance under section 40(a)(ia) for non-deduction of tax on discounts to distributors was held unsustainable where the assessee acted under a bona fide belief that no TDS was required and the recipients had already paid tax on the corresponding income. The Tribunal treated the second proviso to section 40(a)(ia) as curative and declaratory, and therefore retrospectively applicable. Relief was made contingent on verification that the distributors had discharged their tax liability, and the matter was remanded for that limited factual inquiry. Case-Laws Income Tax Mon, 24 Oct 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337092