https://www.taxtmi.com/caselaws?id=350791 The Tribunal allowed the appeal of the assessee, holding that the second proviso to Section 40(a)(ia) of the Income Tax Act is declaratory and curative, with retrospective effect from 1st April 2005. Therefore, the disallowance of interest paid to NBFCs without deduction of tax was not justified as the recipients had included the income in their tax returns and paid the due taxes. The decision aligned with previous rulings emphasizing the compensatory nature of the provision and ensuring fairness to the assessee. en-us Thu, 09 Nov 2017 00:00:00 +0530 Mon, 13 Nov 2017 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=350791 The Tribunal allowed the appeal of the assessee, holding that the second proviso to Section 40(a)(ia) of the Income Tax Act is declaratory and curative, with retrospective effect from 1st April 2005. Therefore, the disallowance of interest paid to NBFCs without deduction of tax was not justified as the recipients had included the income in their tax returns and paid the due taxes. The decision aligned with previous rulings emphasizing the compensatory nature of the provision and ensuring fairness to the assessee. Case-Laws Income Tax Thu, 09 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=350791