2020 (7) TMI 253

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....mitted by a bench of this Court vide order dated 26.06.2013 on the following substantial questions of law: (i) Whether the Tribunal was justified in law in holding that the amendment made by Finance Act, 2010 in the provisions of Section 40(a)(ia) of the Income-tax Act, 1961 is not retrospective in operation on the facts and circumstances of the case? (ii) Whether the Tribunal was justified in law in reversing the well reasoned order of the learned Commissioner of Income-tax (Appeals) on the facts and circumstances of the case? (iii) Without prejudice whether the Tribunal was justified in law in not holding the appellant is liable to deduct tax at source only on the amount payable on the end of the financial year as per provisions of ....

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....the assessee filed an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by an order dated 13.09.2010 inter alia held that amendment brought about in the Finance Act, 2010 in Section 40(a)(ia) of the Act is retrospective in nature and deleted the addition made by the assessing officer. 3. The revenue preferred an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal' for short). The tribunal vide order dated 04.04.2012 by placing reliance on decision of the special bench of the tribunal in M/S BHARATHI SHIPYARD LTD. VS. DCIT, 11 ITR (TRIB) 599 (Mum) held that the provisions of Section 40(a)(ia) of the Act as amended by Finance Act, 2010 are not retros....

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.... further, it is apposite to take note of Section 40(a)(ia) as amended by Finance Act, 2010, which reads as under: Section 40(a)(ia): Any interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or; after deduction , has not paid on or before the due date specified in sub-section (1) of section 139. Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during....