Held, that Circular No. 1 of 2015, dated January 21, 2015 ([2015 371 ITR (St.) 22), clarified that the amendment by the Finance (No. 2) Act, 2014 to the provisions of section 40(a)(ia) of the Act takes effect from April 1, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. The Assessing Officer was to apply the amended provision while computing disallowance under section 40(a)(ia) of the Act. Followed, Shree Choudhary Transport Co. v. ITO (2020) 426 ITR 289 (SC). (AY.2012-13 to 2015-16)
Citrus Check Inns Ltd. v. Dy. CIT (2023)106 ITR 103 (SN)(Mum) (Trib)
S. 40(a)(ia): Amounts not deductible-Deduction at source-Selling holiday membership plans to members-Matter remanded to the Assessing Officer for verification-Amendment with effect from 1-4-2015 providing for disallowance of thirty Per Cent. of expense to apply for Assessment year 2015-16 and subsequent years-Assessing Officer is directed to apply amended provision.