2009 (11) TMI 27 - SUPREME COURT

Amendment to section 43B - omission [deletion] of the second proviso to Section 43-B – whether retrospective in nature – regarding restriction of deduction in respect of any sum payable by an employer by way of contribution to provident fund/superannuation fund or any other fund for the welfare of employees, unless it stood paid within the specified due date – held that - the second proviso resulted in implementation problems, which have been mentioned hereinabove, and which resulted in the enactment of Finance Act, 2003, deleting the second proviso and bringing about uniformity in the first proviso by equating tax, duty, cess and fee with contributions to welfare funds. Once this uniformity is brought about in the first proviso, then, in our view, the Finance Act, 2003, which is made applicable by the Parliament only with effect from 1st April, 2004, would become curative in nature, hence, it would apply retrospectively with effect from 1st April, 1988 – Decision in Allied Motors (P) Limited vs. Commissioner of Income Tax, [2008 -TMI - 5575 - SUPREME Court], followed