2000 (1) TMI 2 - SC - Income Tax

Whether Explanation 2 to section 40(b) of the Income-tax Act, 1961, introduced with effect from April 1, 1985, is only declaratory - Held, yes

Summary

The Supreme Court dismissed the appeal regarding the prospective operation of Explanation 2 to section 40(b) of the Income-tax Act, 1961. The court upheld the view that the Explanation is declaratory, based on previous cases. The appeal was dismissed with no order as to costs.