Dismissing the appeal of the revenue the Court held that the Tribunal was right in deleting the disallowance made under section 40(a)(ia) of the Income-tax Act, 1961 for non-deduction of tax at source on transport charges was to be allowed and in holding that the amendment to section 40(a)(ia) introduced in the year 2010 was applicable retrospectively to the assessment year 2005-06. Followed CIT v. Calcutta Export Co (2018) 404 ITR 654 (SC). (AY.2005-06)
CIT v. Western Agencies (Madras) Pvt. Ltd. (2021) 434 ITR 613/ 280 Taxman 308 (Mad.)(HC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Transport charges-Amendment inserted by the Finance Act, 2010 is applicable to earlier years-No disallowance can be made. [S. 139(1)]