https://www.taxtmi.com/caselaws?id=22692 HC upheld the constitutional validity and retrospective operation of Explanation 2 to section 43B, holding that the legislative intent is clear: deduction for taxes is allowable only on actual payment. The court rejected the challenge that Explanation 2 is ultra vires or arbitrary, observing that Parliament is competent to plug fiscal loopholes and that the provision is neither discriminatory nor violative of fundamental rights. Finding no jurisdictional error in the notice issued under section 154 seeking withdrawal of the earlier deduction, HC declined to exercise writ jurisdiction under Article 226, noting that the assessee can raise all objections before the income-tax authorities. The writ petition was dismissed. en-us Thu, 10 Jan 1991 00:00:00 +0530 Wed, 10 Dec 2025 15:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22692 HC upheld the constitutional validity and retrospective operation of Explanation 2 to section 43B, holding that the legislative intent is clear: deduction for taxes is allowable only on actual payment. The court rejected the challenge that Explanation 2 is ultra vires or arbitrary, observing that Parliament is competent to plug fiscal loopholes and that the provision is neither discriminatory nor violative of fundamental rights. Finding no jurisdictional error in the notice issued under section 154 seeking withdrawal of the earlier deduction, HC declined to exercise writ jurisdiction under Article 226, noting that the assessee can raise all objections before the income-tax authorities. The writ petition was dismissed. Case-Laws Income Tax Thu, 10 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22692