Dismissing the appeal of the revenue the Court held that the amendment to S. 40(a)(ia) by the Finance Act, 2010 , was retrospective in operation with effect from April 1, 2005. The various High Courts had taken the view that the provision being a machinery provision, retrospective effect being given to it was appropriate. There was no reason as to why such view should be departed from. No question of law arose. Followed CIT v. Naresh Kumar (2014)362 ITR 256 ( Delhi) (HC) , CIT v. Omprakash R. Chaudhary ( 2014)3 ITR –OL 282 ( Guj) (HC) CIT v Sri Scorpio Engineering Ltd ( 2016) 388 ITR 266 (Karn) (HC) , CIT v. Virgin Creations ( ITA No 302 of 2011 dt 23-11-2011) ( Cal ) (HC) (AY. 2009 10 )
CIT v. Shraddha and S. S. Kale, Joint Venture . (2019) 417 ITR 439 (Bom) (HC)
S.40(a)(ia):Amounts not deductible – Deduction at source –
Amendment to S.40A(ia) by Finance Act, 2010 permitting deposit of tax deducted at source till due date for filing return is retrospective in operation. [ S 139(1),260A ]