2020 (7) TMI 570

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d counsel appearing for the respondent - assessee. 2. This appeal by the Revenue is directed against the order dated 19.6.2013 made in ITA.No.2286/Mds/2012 on the file of the Income Tax Appellate Tribunal, Chennai 'A' Bench for the assessment year 2005-06. 3. The appeal has been admitted on 01.9.2014 on the following substantial questions of law : "i. Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that amendment made to Section 40(a)(ia) by Finance Act, 2010 would apply retrospectively though the amendment is made with effect from 01.4.2010 ? and ii. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in h....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uct rate and when expenditure which becomes subject matter of an order under Section 40(a)(ia) is substantial, can suffer severe adverse consequences if the amendment made in 2010 is not given retrospective operation i.e., from the date of substitution of the provision. Transferring or shifting expenses to a subsequent year, in such cases, will not wipe off the adverse effect and the financial stress. Such could not be the intention of the legislature. Hence, the amendment made by the Finance Act, 2010 being curative in nature required to be given retrospective operation i.e., from the date of insertion of the said provision. 29) Further, in Allied Motors (P) Limited (supra), this Court while dealing with a similar question with re....