Dismissing the appeal of the revenue the Court held that amendment made to section 40(a)(ia) by Finance Act, 2010 inserting proviso therein would apply retrospectively from date of inception of said section i.e. with effect from assessment year 2005-06. Followed CIT v. Calcutta Export Co. (2018)404 ITR 654 (SC). (AY. 2005-06)
CIT v. Archean Granites (P) Ltd. (2020) 273 Taxman 511 (Mad.)(HC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Amendment made to section 40(a)(ia) by Finance Act, 2010 inserting proviso therein would apply retrospectively with effect from assessment year 2005-06.