https://www.taxtmi.com/caselaws?id=421401 The ITAT allowed the appeal, overturning the disallowance of construction expenses under section 40(a)(ia) of the Income-Tax Act for Assessment Year 2012-13. The ITAT held that the 2nd proviso to Section 40(a)(ia) should have retrospective effect from 01.04.2005, as per legal precedents. Since the payee had included and paid taxes on the disputed amount, the disallowance was deemed unjustified. The appellant's compliance with tax conditions absolved them from default status, leading to the vacating of the disallowance of Rs. 29,00,838/-. en-us Tue, 05 Apr 2022 00:00:00 +0530 Sat, 23 Apr 2022 08:34:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421401 The ITAT allowed the appeal, overturning the disallowance of construction expenses under section 40(a)(ia) of the Income-Tax Act for Assessment Year 2012-13. The ITAT held that the 2nd proviso to Section 40(a)(ia) should have retrospective effect from 01.04.2005, as per legal precedents. Since the payee had included and paid taxes on the disputed amount, the disallowance was deemed unjustified. The appellant's compliance with tax conditions absolved them from default status, leading to the vacating of the disallowance of Rs. 29,00,838/-. Case-Laws Income Tax Tue, 05 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421401