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2018 (4) TMI 136 - HC - Income TaxDisallowance u/s 40(a)(ia) - retrospective application of second proviso to Section 40(a)(ia) of the Act - Held that:- It is not disputed that Section 40(a)(ia) proviso is for the benefit of Assessee. When a provision has been made in fiscal statute for benefit of Assessee, in absence of any express provision or a provision which by necessary implication gives a different impression, such provision which is beneficial to Assessee must be read and given effect to retroactively and reiterating this principle Constitution Bench of Apex Court in Commissioner of Income Tax Vs. Vatika Township [2014 (9) TMI 576 - SUPREME COURT] as held that the rule against retrospective operation is a fundamental rule of law that no statute shall be construed to have a retrospective operation unless such a construction appears very clearly in the terms of the Act, or arises by necessary and distinct implication. Dogmatically framed, the rule is no more than a presumption, and thus could be displaced by out weighing factors - Decided in favour of Assessee
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