Allowing the appeal of the assessee the Tribunal held that charitable organisation to which payment was made without deduction of tax at source has shown the receipt and claimed exemption which was allowed . As no tax is to be paid by charitable organisation disallowance cannot be made in view of second proviso with retrospective effect . Accordingly the assessee could not be treated as assessee in default. Accordingly no disallowance can be made. (AY. 2009 -10)
Peerless Hospitex Hospital And Research Centre Ltd. v. ITO (2018) 65 ITR 67(SN) (Kol.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment to charitable organisation- Exemption was granted to charitable organisation and no tax was to be paid–Disallowance cannot be made in view of second proviso with retrospective operation. [S. 11, 12, 197(1), 201]