Retrospective operation of section 40(a)(ia) upheld for a curative tax provision that removes an anomaly.

Section 40(a)(ia) of the Income-tax Act is described as operating retrospectively where the provision was inserted to make the enactment workable and remove an anomaly. The text notes that the Tribunal found tax had been deducted from the relevant payments and deposited before the return filing due date, and the Court relied on Supreme Court authority treating such curative provisions as retrospective. On that basis, the provision was held to have retrospective operation, and the appeal was dismissed.

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Issues: Whether section 40(a)(ia) of the Income-tax Act, 1961 operates retrospectively.

Analysis: The Tribunal had found that tax was deducted from the relevant payments and deposited before the due date for filing the return. The Court noted that the Supreme Court had already treated the provision as retrospective and had held that a provision inserted to make the enactment workable and to remove an anomaly may be given retrospective effect.

Conclusion: Section 40(a)(ia) was held to have retrospective operation, and the appeal was dismissed.

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