https://www.taxtmi.com/caselaws?id=445867 The Delhi HC held that the second proviso to Section 40(a)(ia) has retrospective effect from April 1, 2005. The provision disincentivizes non-deduction of tax at source by disallowing deductions, but the second proviso relaxes this rigour by making application dependent on the assessee being declared in default under Section 201(1). Since no adverse findings were made regarding fulfillment of conditions in the first proviso to Section 201(1), and following precedent, the court accepted that the second proviso is declaratory and curative with retrospective application. en-us Thu, 02 Nov 2023 00:00:00 +0530 Mon, 20 Nov 2023 15:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445867 The Delhi HC held that the second proviso to Section 40(a)(ia) has retrospective effect from April 1, 2005. The provision disincentivizes non-deduction of tax at source by disallowing deductions, but the second proviso relaxes this rigour by making application dependent on the assessee being declared in default under Section 201(1). Since no adverse findings were made regarding fulfillment of conditions in the first proviso to Section 201(1), and following precedent, the court accepted that the second proviso is declaratory and curative with retrospective application. Case-Laws Income Tax Thu, 02 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445867