ThynkTax /Tax Reference /Case Laws /Calcutta Export - Section 40(a)(ia) curative

Calcutta Export - Section 40(a)(ia) curative

Supreme Court of India·2018·TDS
Facts

30% disallowance under Section 40(a)(ia) where TDS deposit was made after the financial year but before ITR due date.

Issue

Whether the 2014 amendment (allowing TDS deposit before ITR due date to avoid disallowance) is retrospective?

Held

Yes - the amendment is curative and retrospective, applicable to all pending assessments.

Ratio

Curative amendments correcting harshness are retrospective.

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