Tribunal held that recipients have shown income in their respective return, hence no disallowances can be made. Second proviso to section 40(a)(ia) is declaratory and curative and it has retrospective effect from 1-4-2005. (AY. 2012-13)
ARSS Infrastructure Project Ltd. v. DCIT (2021) 187 ITD 727 (Cuttack)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest expenditure-Recipients have shown income in their respective returns-No disallowance could be made-Second proviso to section 40(a)(ia) is declaratory and curative and it has retrospective effect from 1-4-2005. [S. 194A]