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2020 (7) TMI 253 - HC - Income TaxDisallowance u/s 40(a)(ia) - Scope of amendment brought about in the Finance Act, 2010 in Section 40(a)(ia) - retrospectively or prospectively effect of amendment - HELD THAT:- The issue whether the aforesaid amendment being curative in nature has retrospective operation was considered by the Supreme Court in the case of CALCUTTA EXPORT COMPANY [2018 (5) TMI 356 - SUPREME COURT] and it was held that the purpose of amendment made by Finance Act, 2010 is to solve the anomalies and proviso was inserted to remedy unintended consequences and to make the provision workable. A proviso which supplies an obvious omission in the Section is required to be read into the Section to give the Section a reasonable interpretation and requires to be treated as retrospective in operation so that a reasonable interpretation can be given to the Section as a whole. Thus, it was held that amendment made by Finance Act, 2010 in Section 40(a)(ia) being curative in nature is required to be given retrospective operation. The aforesaid decision was followed by a division bench of this Court in the case of SANTOSH KUMAR SHETTY [2015 (8) TMI 232 - KARNATAKA HIGH COURT]. The issue with regard to retrospectivity of Section 40(a)(ia) is no longer res integra and is answered by SC in favour of assessee
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