S. 40(a)(ia) amendment by Finance Act 2010 is retrospective

ITO vs. Taru Leading Edge (P) Ltd (ITAT Delhi)

 

For AY 2008-09, the assessee made a deposit of TDS after the due date for payment but before the due date for filing the ROI. The assessee claimed that the amendment to s. 40(a)(ia) by the FA 2010 w.e.f. 1.4.2010, which allows time for deposit of TDS upto the due date of the ROI, should be treated as being retrospective w.e.f. 1.4.2005. The AO rejected the plea though the CIT (A) allowed it. Before the Tribunal, the department relied on Bharati Shipyard 132 ITD 53 (Mum)(SB) where it was held that the amendment was not retrospective. HELD by the Tribunal dismissing the appeal