2010 (11) TMI 386

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..... the same could not be disallowed under section 43B of the Act - The question of law is, thus, answered against the Revenue and in favour of the assessee.
ADARSH KUMAR GOEL, AJAY KUMAR MITTAL JJ JUDGMENT Ajay Kumar Mittal J.- 1. This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act") has been filed by the Revenue against the order dated July 14, 2005, passed by the Income-tax Appellate Tribunal Chandigarh Bench "B" Chandigarh (in short "the Tribunal") in I. T. A. No. 571/Chandi/2003, relating to the assessment year 1998-99. 2. The following substantial question of law has been claimed for determination by this court : "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tri .....

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..... uperannuation and other welfare funds would operate retrospectively from April 1, 1988 onwards. Hence, this appeal by the Revenue. 4. We have heard learned counsel for the appellant and have perused the record. 5. The point for determination in this appeal is, whether the amendment made by the Finance Act, 2003, effective from April 1, 2004 whereby the second proviso to section 43B stands omitted would govern the earlier cases from April 1, 1988 also. 6. It would be appropriate to delve into the brief legislative history and the purpose of enacting the provisions of section 43B of the Act before embarking on the adjudication of the controversy involved in the present appeal. 7. Section 43B provides for disallowance of unpaid statuto .....

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..... d further that no deduction shall, in respect of any sum referred to in clause (b), be allowed unless such sum has actually been paid during the previous year on or before the due date as defined in the Explanation below clause (va) of sub-section (1) of section 36." 8. The Finance Act, 2003 effective from April 1, 2004, made an amendment whereby the second proviso to section 43B of the Act was omitted from the statute book. 9. The issue relating to retrospective operation of the omission of the second proviso to section 43B of the Act was considered by the Supreme Court in CIT v. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC) wherein it was held that it is curative in nature and would apply retrospectively, with effect from April 1, 1988 .....

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