TMI Blog2006 (7) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... eliance on Explanation 3C to section 43B and answer the questions against the assessee and in favour of the Revenue. - 34 of 1999 - - - Dated:- 6-7-2006 - A. M. SAPRE and N. K. MODY JJ. H. Y. Mehta and Smt. S. H. Mehta for the assessee. R. L. Jain with Ku. V. Mandlik for the Revenue. JUDGMENT The judgment of the court was delivered by A. M. SAPRE J. - This is an income-tax reference made under section 256(1) of the Income-tax Act to this court at the instance of the assessee by the Tribunal to answer the following questions of law said to arise out of the order passed by the Tribunal, dated August 31, 1998, in I. T. A. No. 65/Ind/1994: "1. Whether, on the facts and circumstances of the case, the Tribunal erred in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy of this reference, the Parliament amended section 43B by the Finance Act, 2006, retrospectively with effect from April 1, 1989, and added Explanations 3C and 3D which read as under: "12. Amendment of section 43B.- In section 43B of the Income-tax Act,- (a) after Explanation 3B, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1989, namely:- 'Explanation 3C. - For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause (d) of this section, shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for answering the question, as the case may be. It cannot be ignored by the courts. The amendment made in section 43B by Parliament with retrospective effect fully applies to this case and, hence, this court cannot ignore its impact on this reference. Indeed, any statute if brought on the statute book retrospectively has the same effect like the statue when enacted prospectively. 6. In substance, the question that fell for consideration and was being debated in this reference in the form of questions referred at the instance of the assessee was whether the assessee is entitled to claim the benefit of deduction of funded interest under section 43B which has been converted into loan or borrowing by agreement between the lender and the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
