https://www.taxtmi.com/caselaws?id=325277 Section 40(a)(iib) of the Income-tax Act was applied prospectively from assessment year 2014-15 because the provision, CBDT circular and Finance Bill materials expressly fixed that commencement, and there was no clear retrospective language. On that basis, privilege fee paid by a State Government undertaking for earlier assessment years could not be disallowed under the later amendment or treated as an inadmissible diversion of profits merely because of its label or quantum. The settled position that the State may charge consideration for parting with exclusive liquor rights remained unaffected, and the earlier assessments were unsustainable to the extent they disallowed the fee. en-us Thu, 18 Feb 2016 00:00:00 +0530 Wed, 15 Mar 2017 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325277 Section 40(a)(iib) of the Income-tax Act was applied prospectively from assessment year 2014-15 because the provision, CBDT circular and Finance Bill materials expressly fixed that commencement, and there was no clear retrospective language. On that basis, privilege fee paid by a State Government undertaking for earlier assessment years could not be disallowed under the later amendment or treated as an inadmissible diversion of profits merely because of its label or quantum. The settled position that the State may charge consideration for parting with exclusive liquor rights remained unaffected, and the earlier assessments were unsustainable to the extent they disallowed the fee. Case-Laws Income Tax Thu, 18 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325277