A 'Clarificatory' Provision In Tax Laws Cannot Impose A New Condition Retrospectively: Supreme Court
3 years, 4 months ago

A 'Clarificatory' Provision In Tax Laws Cannot Impose A New Condition Retrospectively: Supreme Court

Live Law  

A retrospective provision in a tax act which is "for the removal of doubts" cannot be presumed to be retrospective, even where such language is used, if it alters or changes the law as it earlier stood, the Supreme Court observed while holding that Explanation 3C to Section 43B of the Income Tax Act is 'clarificatory' and does not add a new condition retrospectively.The bench of Justices. A retrospective provision in a tax act which is "for the removal of doubts" cannot be presumed to be retrospective, even where such language is used, if it alters or changes the law as it earlier stood, the Supreme Court observed while holding that Explanation 3C to Section 43B of the Income Tax Act is 'clarificatory' and does not add a new condition retrospectively. Section 43B reads as follows: Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of— xxx xxx xxx any sum payable by the assessee as interest on any loan or borrowing from any public financial institution or a State financial corporation or a State industrial investment corporation, in accordance with the terms and conditions of the agreement governing such loan or borrowing, or xxx xxx xxx shall be allowed only in computing the income referred to in section 28 of that previous year in which such sum is actually paid by him: Provided that nothing contained in this section shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return. Before the High Court, Revenue filed appeal raising the question "Whether the funding of the interest amount by way of a term loan amounts to actual payment as contemplated by Section 43B of the Income-tax Act, 1961?"

History of this topic

S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC
6 days, 2 hours ago
SC's Judgement In Abhisar Buildwell Case Doesn't Permit Reopening Of Assessments Beyond Limitation Period U/S 149(1) Of IT Act: Delhi HC
1 week ago
Tax Weekly Round-Up: December 09 - December 15, 2024
1 week, 1 day ago
Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC
Trending News
1 week, 4 days ago
[Income Tax] No Substantial Question Of Law Arises If Perversity Cannot Be Shown In Order Passed By Tribunal: Allahabad High Court
2 weeks, 4 days ago
Finance Act, 2013 | Audit Report Determining Tax Liability Doesn't Bar Eligibility Under Voluntary Compliance Encouragement Scheme: Delhi HC
3 weeks, 1 day ago
Tax Weekly Roundup: November 18 - November 24, 2024
4 weeks, 1 day ago
Tax Weekly Roundup: November 18 - November 24, 2024
4 weeks, 1 day ago
Recourse To Section 147 Of Income Tax Act Not Barred In Cases Where Assessing Officer Is Empowered To Proceed U/S 153C: Delhi High Court
1 month ago
When Is Action For Imposition Of Penalty 'Initiated' U/S 271C Of Income Tax Act For Failure To Deduct Tax At Source: Delhi HC Explains
Trending News
1 month, 1 week ago
[S.263 IT Act] Revisionary Power Can Be Invoked When Order Meets Twin Conditions Of Being Erroneous, Prejudicial To Interest Of Revenue: Delhi HC
1 month, 1 week ago
Consequential Order Passed By Assessing Authority Beyond Terms Of Remand By Commissioner Is Unacceptable: Kerala High Court
1 month, 1 week ago
Mistake On Part Of AO Resulting In Under Assessment Of Income No Ground To Re-Open Assessment U/S 147 Of Income Tax Act: Delhi HC
1 month, 1 week ago
Mistake In Calculation Of Tax As Per Sec 115BBE Can Be Rectified U/s 154 And Not U/s 263: Ahmedabad ITAT Quashes Revision Made By PCIT
4 months, 1 week ago
Income Tax Additions Can't Be Based On Generalised Report By Investigation Wing: ITAT
4 months, 1 week ago
AO Can't Disregard ITAT's Direction To Re-examine Issue By Referring To CBDT Circular: Delhi High Court
4 months, 3 weeks ago
Tax Effect In Appeals Below Monetary Limit Of Rs.1 Crore; Kerala High Court Dismisses ​​Dept's Appeal
5 months, 1 week ago
Order Of ITSC Final And Conclusive For AY For Which Application Has Been Filed: Delhi High Court
5 months, 2 weeks ago
Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024
6 months, 2 weeks ago
Exemption Allowable On Donations Made By One Charitable Trust To Other Charitable Institutions For Temporary Period: Delhi High Court
6 months, 2 weeks ago
AO Can't Draw An Adverse Inference For Mere Non-Response From Directors To Notices: Calcutta High Court
7 months, 1 week ago
Income Tax Authority Should Refrain From Over Analysis Which Leads To Paralysis Of Justice: Bombay High Court
7 months, 3 weeks ago
Failure Of Dept. To Comply With ITAT's Order: Delhi High Court Directs Dept. To Remove Demands, Penalty From ITBA portal
8 months ago
Indirect Tax Cases Weekly Round-Up: 7 April To 13 April 2024
8 months, 1 week ago
Direct Tax Cases Quarterly Digest 2024
8 months, 2 weeks ago
ITAT Cases Weekly Round-Up: 31 March To 6 April 2024
8 months, 2 weeks ago
ITAT Cases Monthly Round-Up: March 2024
8 months, 3 weeks ago
Congress’ plea against tax re-assessment by I-T authorities dismissed by Delhi High Court
8 months, 3 weeks ago
Delhi High Court rejects Congress’s plea against tax reassessment
9 months ago
Penalty Imposed U/s 271A On Wrongful Consideration Of Facts Merits To Be Deleted: Jaipur ITAT
9 months, 1 week ago
Reopening Of Income Tax Assessments : Supreme Court Refuses To Interfere With Delhi High Court's Guidelines To Tax Dept
10 months, 1 week ago
Direct Tax Cases Weekly Round-Up: 04 To 10 February 2024
10 months, 1 week ago
Direct Tax Cases Monthly Round Up: January 2024
10 months, 2 weeks ago
Direct Tax Weekly Round-Up: 14 To 20 January 2024
11 months ago
Change Of Opinion Does Not Constitute Justification To Believe Income Chargeable To Tax Has Escaped Assessment: Bombay High Court
11 months ago
CIT(A) Has No Jurisdiction To Enhance Income U/S 251(1) By Disallowing ESOP Expenses In Revised Return If AO Has Not Dealt With It: Mumbai ITAT
11 months ago
Supreme Court Surprised At 4-Year Delay By Income Tax Department In Filing Appeals; Asks About Action Against Officials
11 months, 1 week ago
Delhi High Court Upholds Constitutional Validity Of Section 115BBE Of Income Tax Act
11 months, 3 weeks ago
Investments Made Through Banking Channels Can't Be Disbelieved, Onus On Revenue To Prove Otherwise: Allahabad HC
1 year ago
Tax Cases Weekly Round-Up: 26 November To 2 December, 2023
1 year ago
Dept.’s Personal Opinion Not Tangible Material For Reopening Assessment: Calcutta High Court Quashes Reassessment
1 year ago
Tax Cases Weekly Round-Up: 6 August To 12 August, 2023
1 year, 4 months ago
ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT
1 year, 4 months ago
Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court
1 year, 5 months ago
Tax Cases Weekly Round-Up: 4 June To 10 June, 2023
1 year, 6 months ago
Supreme Court Quarterly Tax Digest 2023
1 year, 7 months ago
Tax Cases Weekly Round-Up: 07 May to 13 May, 2023
1 year, 7 months ago
Without Corroborating Evidence, Addition Can’t Be Made On The Basis Of A Declaration Made U/s 132(4) Of The Income Tax Act: ITAT
1 year, 8 months ago
Tax Cases Weekly Round-Up: 16 April To 22 April, 2023
1 year, 8 months ago
Assessment Order Issued Without DIN, Invalid; S. 292B Of ITA Not Applicable: Delhi High Court
1 year, 8 months ago

Discover Related