Held, that section 40(a)(ia), as amended by the Finance Act, 2010, with effect from April 1, 2010 was applicable from the date section 40(a)(ia) was inserted in the Act. The assessee had deducted tax at source on the payment of commission and interest on June 7 and 11, 2008 respectively which was in the subsequent year. The case of the assessee was therefore not covered by the main section and the proviso is applicable. However, the appeal was for the assessment year 2008-09 and 13 years had passed. Therefore, making disallowance for the assessment year 2008-09 and allowing the deduction for the assessment year 2009-10 was an unnecessary exercise. The rate of tax remained the same for the assessment years 2008-09 and 2009-10. And the disallowance for the assessment year 2008-09 would be a revenue neutral exercise. The order of the Commissioner (Appeals) called for no interference.(AY.2008-09)