TaxTMI 
TaxTMI 
2021 (9) TMI 842
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Revenue is relating to whether the second proviso section 40(a)(ia) of the Income Tax Act, 1961 ["Act" in short] applies retrospectively or only prospective from the date of insertion i.e., 01.04.2013. In the assessment order, the Assessing Officer has noted that the assessee has made following payments and claimed the same as advertisement expenses in the profit and loss account: Date Paid to Amount in Rs. 05.08.2010 Om Sai Publication 5,94,500/- 09.08.2010 Aamoda Publications 8,21,197/- 10.01.2011 M/s. Vijay Television Pvt. Ltd. 64,88,265/- M/s. Vision Time India Pvt. Ltd. 85,55,095/- Total 1,64,59,057/- The Assessing Officer further noted that the above payments are....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t. By following various decisions particularly, the decision of the Hon'ble Delhi High Court in the case of CIT v. Ansal Landmark Township (P) Ltd. 377 ITR 365 and also the decision of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverages P. Ltd. v. CIT 293 ITR 226 and also by following jurisdictional ITAT in the case of Quantum Knits P. Ltd. in ITA Nos. 2164/Mds/2014 and 287/Mds/2016, the ld. CIT(A) directed the Assessing Officer to provide an opportunity to the assessee to furnish Form 26A from the recipients of the payments made without TDS and to delete the addition to the extent the recipients have offered the above payments in their respective returns of income. 4. Aggrieved, the Revenue is in appeal before....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the application of second proviso to section 40(a)(ia) of the Act is retrospective in nature and relevant portions are extracted as under: "8. So far as invoking section 40a(ia) of the Act is concerned, the ld. CIT(A) has held that the applicability of second proviso introduced through Finance Act, 2012 is only prospective in nature and has no retrospective effect by following the judgement of Hon'ble Kerala High Court in the case of Thomas George Muthoot v. CIT 287 CTR 101. The ld. Counsel for the assessee has relied on the judgement in the case of CIT v. Calcutta Export Company [2018] 93 taxmann.com 51 (SC), wherein the Hon'ble Supreme Court has held that the amendment made by the Finance Act, 2010 to provisions of sectio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sing Officer has disallowed the entire payment made to assessee's husband on the ground that the assessee has not deducted TDS under section 194J of the Act and for not deducting the same, section 40a(ia) of the Act applies. On appeal, the ld. CIT(A) confirmed the same. The first point for our consideration is whether the operation of second proviso to section 40a(ia) of the Act introduced through Finance Act. 2012 with effect from 01.04.2013 is prospective or retrospective. The ld. CIT(A) has relied on the decision of Hon'ble Kerala High Court in the case of Thomas George Muthoot v. CIT (supra) for the preposition that the above provision applies only prospective. However, the Hon'ble Delhi High Court in the case of CIT v. Ansa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....39;ble Delhi High Court has held that it operates retrospectively. The Hon'ble Supreme Court also in the case of CIT v. Calcutta Export Company (supra) has considered similar amendment made by Finance Act, 2010 to provisions of section 40(a)(ia), which is curative in nature and should be given retrospective operation from the date of insertion of said provision. Keeping in view of the above judgements of Hon'ble Supreme Court as well as Hon'ble Delhi High Court and also by following the judgement of the Hon'ble Supreme Court in the case of CIT v. Vegetable Products Ltd. 88 ITR 192, wherein, the Hon'ble Supreme Court has held that where two views are possible, the view which is favourable to the assessee has to be followe....