2017 (2) TMI 583

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....2. The Revenue's sole substantive ground seeks to revive Section 40(a)(ia) disallowance of Rs. 30,78,700/- made by the Assessing Officer in the impugned re-assessment framed on 01.11.2012 on account of assessee's failure in not remitting the TDS deducted as per the scheme of the Act. The Revenue's case is that the CIT(A) has erred in deleting the above stated disallowance after observing as under: "(b) Ground No. 2 to 8 are descriptive with fact, case laws etc. but mainly against the disallowance u/s 40(a)(ia) of the Act and addition of Rs. 30,78,000/-. It is contended in the ground that TDS was deducted out of such payment and paid before the due date of filing of return of income hence as per judicial pronouncement as relied on by appel....

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.... v/s Virgin creations in its judgment dt. 23/11/11 held that amendment brought by the Finance Act 2010 in section 40(a)(ia) of the Act are clarificatory and retrospective hence no disallowance be made u/s 40 (a)(ia) of the Act where IDS has been paid before the due date of filling of return of income. Hon'ble ITAT Ahmedabad 'B' Bench in its order dt. 03/01/10 in the case of Shri Kanubhai Ramjibhai Makwana v/s ITO followed the same ratio. In the case of ITO Ward 9(4) v/s Shri Sanjay Sandalal Patel ITA No. 2826/Ahd/2011 (A.Y. 08-09) vide order dt. 23/03/201, Hon'ble ITAT Ahmedabad even after considering the special bench order in the case of M/s Bhartishipyard Ltd. V/s Dy. C.I.T (ITA No. 2404/Mum/2009 order dt. 12/09/11) follo....