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Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad
Before: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman
Per Smt. P. Madhavi Devi, J.M.
This is Revenue’s appeal for the A.Y 2010-11 against the order of the CIT (A)-1, Hyderabad, dated 21.02.2017, deleting the disallowance made by the AO u/s 40(a)(ia) of the Act, on the ground that the recipient has offered the income in its return of income and paid the tax.
We find that this issue is covered in favour of the assessee by the decision of the Hon'ble Supreme Court in the case of CIT vs. Calcutta Export Company reported in (2018) 93 Taxmann.com 51 (S.C) wherein it was held that “Amended provision of section 40( a)( ia) should be interpreted liberally and equitable and applies retrospectively from the date when section 40( a)( ia) was inserted i:e., with effect from the Assessment Year 2005-
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ITA No 1025 of 2017AGA Publications Ltd Hyderabad.
06 so that an assessee should not suffer unintended and deleterious consequences beyond what the object and purpose of the provision mandates. As the developments with regard to section recorded above shows that the amendment was curative in nature, it should be given retrospective operation as if the amended provision existed even at the time of its insertion”.
We find that in the case of the assessee, it has been held that the recipient has offered the tax in its return of income and paid taxes, and therefore, no disallowance u/s 40(a)(ia) of the Act is to be made and for coming to this conclusion, the CIT (A) has followed the correct legal position and also the decision of ITAT in assessee’s own case for the earlier A.Ys. Therefore, we see no reason to interfere with the order of the CIT (A).
In the result, Revenue’s appeal is dismissed. Order pronounced in the Open Court on 6th June, 2018.
Sd/- Sd/- (S.Rifaur Rahman) (P. Madhavi Devi) Accountant Member Judicial Member
Hyderabad, dated 6th June 2018. Vinodan/sps
Copy to: 1 Dy. CIT, Circle 1(1) 8th Floor, C Block, Room No.836, IT Towers, Hyderabad 500004 2 M/s. AGA Publications Ltd, 396, Vartha Buildings, Lower Tank Bund Road, Hyderabad 500080 3 CIT (A)-1, Hyderabad 4 Pr. CIT – 1, Hyderabad 5 The DR, ITAT Hyderabad 6 Guard File
By Order
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