The assessee had\u00a0claimed labour charges,\u00a0Architect Fees and towards expenses under head commission, which\u00a0were in nature of payments made towards contract payment u\/s\u00a0194C, professional fees payment u\/s\u00a0194H and commission payment u\/s\u00a0194H. Assessee had also\u00a0failed to deposit TDS amount so deducted from payments made towards expenses on account of labour charges, professional fees and commission to Central Govt. A\/c within specified time limit. AO made disallowance u\/s 40(a)(ia) of the Act. \u00a0CIT (A) confirmed the disallowance. On appeal the Tribunal held that as per amendment brought to Finance Act, 2014 in\u00a0s.\u00a040(a)(ia) w.e.f. 01.04 2015\u00a0 if 100% disallowance made u\/s\u00a040(a)(ia), that would be restricted to 30% only\u00a0giving retrospective effect. Intent of legislature to reduce hardship, it\u00a0was\u00a0proposed that in case of non-deduction or non-payment of TDS on payments made to residents as specified in s.\u00a040(a)(ia), disallowance should\u00a0be restricted to 30% of amount of expenditure claimed. (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40(a)(ia) : Amounts not deductible-Deduction at source\u2013 Labour charges\u2013Failure to deduct tax at source-As per amendment brought to Finance Act, 2014 in s. 40(a)(ia) w.e.f. 01.04 2015, disallowance is restricted to 30% of amount of expenditure claimed-Amendment is applicable to retrospective effect. [S. 194C, 194H]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11491","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Zl","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=11491"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11491\/revisions"}],"predecessor-version":[{"id":11492,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11491\/revisions\/11492"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=11491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=11491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=11491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}