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2017 (5) TMI 784 - HC - Income TaxDisallowance under Section 40 a (ia) - retrospectivity - Held that - This issue is now not res integra in view of the decision of the Division Bench of this Court in the case of Commissioner of Income Tax Vs. Omprakash R. Chaudhari and Others 2015 (2) TMI 150 - GUJARAT HIGH COURT wherein specifically observed and held that the amendment to Section 40 a (ia) of the Income Tax Act by Finance Act, 2010 shall be made applicable retrospectively. - Decided against revenue
Issues:
1. Applicability of the amendment to Section 40 [a] (ia) of the Income Tax Act retrospectively. Analysis: The judgment delivered by the Gujarat High Court pertains to a Tax Appeal filed by the Revenue against the decision of the Income Tax Appellate Tribunal. The Tribunal had dismissed the Revenue's appeal, holding that the provision to Section 40 [a] (ia) of the Income-tax Act, 1961, introduced by the Finance Act, 2010, would apply retrospectively. The proposed question of law in the appeal was whether the Tribunal erred in law and on facts in deleting the disallowance of a specific amount under Section 40 [a](ia) of the Act. The High Court noted that the issue of the retrospective applicability of the amendment to Section 40 [a] (ia) had been settled by a previous decision of the Division Bench in the case of Commissioner of Income Tax Vs. Omprakash R. Chaudhari and Others. The Division Bench had explicitly held that the said amendment would be applicable retrospectively. It was further mentioned that this decision had been upheld by the Hon'ble Supreme Court. Given the precedent set by the Division Bench and the Supreme Court's confirmation, the High Court concluded that no substantial question of law arose in the present Tax Appeal. Therefore, the High Court dismissed the Tax Appeal, emphasizing that the issue had already been conclusively decided against the Revenue by the Division Bench's decision, and there was no basis for challenging the retrospective applicability of the amendment to Section 40 [a] (ia) of the Income Tax Act.
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