TDS on leased line charge already paid cannot be enforced by subsequent amendment

DCIT Vs Barclays Technology Centre India Pvt. Ltd. (ITAT Pune)

Conclusion: Liability to deduct tax at source on leased line charges could be fastened only under the law prevailing at the time of payment. If no liability existed at the time of payment, any subsequent retrospective amendment could not be enforced against the payer. Once there was no liability to deduct tax at source at the material time, the fortiori was that there could be no question of disallowance u/s 40(a)(ia).

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