INCOME TAX ACT, 1961

Section 254(1)

Appeal (tribunal) - Additional ground - Legal issue - Applicability of second proviso tos ection 40(a)(ia) inserted with effect from 1-4-2020

Assessee by way of additional ground of appeal raised before ITAT, challenged disallowance made by AO under ection 40(a)(i) in view of insertion of second proviso tos ection 40(a)(i) with effect from 1-4-2020, which was held to be of retrospective effect from 1-4-2005 by various High courts.Held: Additional grounds of appeal filed by assessee was legal issue and the amendment to section 40(a)(i) and section 201, its applicability was question of law. Accordingly, additional grounds was admitted for adjudication.

Followed:NTPC Ltd. 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

INCOME TAX ACT, 1961

Section 40(a)(ia)

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