2007 (1) TMI 135

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....of law under section 256(1) of the Income-tax Act, 1961 for the opinion of this court: "Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was legally justified in holding that the first proviso to section 43B, inserted by the Finance Act, 1987, with effect from April I, 1988, was retrospective in operation being clarificatory in nature, and thereby directing....

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....under section 43B in the assessment for the assessment year under consideration. In appeal, besides confirming the disallowance of Rs. 26,447 in view of Explanation 2 inserted by the Finance Act, 1989, with retrospective effect from April 1, 1984, the learned Commissioner of Income-tax (Appeals) enhanced the assessed income by Rs. 1,75,353 because the deduction on account of that amount of unpaid ....

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.... in operation, being explanatory in nature, and to delete the disallowance made under section 43B to that extent. While holding so, the Appellate Tribunal pointed out that Explanation 2 to section 43B does not control the first proviso to section 43B but was subject to the said proviso. We have heard Sri A. N. Mahajan, learned standing counsel for the Revenue. In view of the decision of the ....