Gujarat HC Upholds Tribunal Decision on Section 40(a)(ia) Expenditure Disallowance

The Gujarat HC dismissed the Revenue's Tax Appeal against the Tribunal's judgment, which deleted expenditure disallowance under section 40(a)(ia) of the Act. The Court applied the explanation to section 40(a)(ia) retrospectively, upholding the Tribunal's decision regarding the belated deposit of tax deducted at source.

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The Gujarat High Court dismissed the Tax Appeal by the Revenue against the Income Tax Appeal Tribunal's judgment. The Tribunal deleted the disallowance of expenditure under section 40(a)(ia) of the Act amounting to Rs. 88,35,163, stating that tax deducted at source was deposited but belated. The Court applied the explanation to section 40(a)(ia) retrospectively.

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