No disallowance on non-deduction of TDS if payee discharged tax liability on income; Applicable retrospectively: ITAT

Brief of the Case ITAT Bangalore held In the case of M/s. Ravi Spice Processors P. Ltd vs. ACIT that amendment to Sec. 40(a) (ia) whereby a second proviso was inserted by the Finance Act, 2012, w.e.f. 1-4-2013 which state that if the payee has considered the income in return of income and tax has been paid by the payee, it will be presumed that the payer has discharged his liability. It was held that these provisions are intended to remove hardship with the assessee, so these will be applicable retrospectively w.e.f. 01/04/2005. However to verify whether the payee has accounted and paid the ta...