2012 (2) TMI 647

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.... Rajeev Kumar, D.R. ORDER Per Pramod Kumar: This appeal filed by the Revenue is against the order dated 01.08.2011 of ld. Commissioner of Income-tax (Appeals)-XX, Kolkata for the assessment year 2005-06 on the following grounds :- (1) Ld. CIT(A.) has erred on law and fact by not accepting the plan and clear meaning of the amendment made in section 40(a)(ia) by the Finance Act, 2010 whi....

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....ed period. The Assessing Officer disallowed Rs. 40,82,089/- as commission payment in view of the provision of section 40(a)(ia) of the Act. In appeal, ld. CIT(Appeals) deleted the disallowance made by the Assessing Officer by relying on the ratio laid down by the ITAT, 'A' Bench, Kolkata in ITA No. 267/Kol./2009 for the assessment year 2005-06 in the case of Virgin Creations, Kolkata vide order da....

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....irgin Creations in favour of assessee by following the decision of the Hon'ble Supreme Court in the case of R.B. Jodha Mal Kuthiala reported in 82 ITR 570, wherein the Hon'ble Supreme Court held that "the provision, which has inserted the remedy to make the provision workable, requires to be treated with retrospective operation so that reasonable deduction can be given to the section as well". Bot....