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2020 (10) TMI 1079 - AT - Income TaxDisallowance u/s. 36(1)(v) on account of unapproved Gratuity Expenses - AO was of the view that in the assessee's case, the contribution is made to an unapproved Gratuity Fund, therefore deduction u/s. 36(1)(v) of the Act cannot be claimed - HELD THAT:- Payment made by the assessee to the Life Insurance Corporation under Group Gratuity Scheme would be an allowable expenditure as held in the case of Shri Sajjan Mills [1985 (10) TMI 2 - SUPREME COURT] therefore respectfully following above we allow ground no. 1 raised by the assessee. Disallowance u/s. 40(a)(ia) on account of non-deduction of TDS - scope of amendment - whether Disallowance should be restricted to 30% of the total disallowance as per amended provision of Income Tax Act? - whether insertion of second proviso to Sec. 40(a)(ia) is retrospective or prospective in nature? - HELD THAT:- The said issue raised by the assessee is no longer res integra, recently in the case of Shree Choudhary Transport Company [2020 (8) TMI 23 - SUPREME COURT] held that amendment in the second proviso to Sec. 40(a)(ia) is prospective in nature. Hence the amendment in the second proviso to Sec. 40(a)(ia) is prospective in nature therefore, disallowance should not be restricted to 30% of the total disallowance therefore we dismiss the ground raised by the assessee.
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