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TMI Blog2014 (5) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... n 3C added to section 43B has specifically been made retrospective with effect from 1st April, 1989 - It is not possible to hold that Explanation 3C would nonetheless apply prospectively as contended by the assessee – Decided in favour of Revenue. - ITA No. 210 of 2001 - - - Dated:- 13-5-2014 - Girish Chandra Gupta And Sudip Ahluwalia,JJ. For the Petitioner : Mr. P. K. Bhowmick For the Respondents : Mr. Aniket Mitra, Ms. Pratima Roychoudhury ORDER The Court : We have already formulated the question and recorded the facts and circumstances of the case in our order dated 25th April, 2014, which need not be reiterated. Mr. Bhowmick, learned Advocate appearing for the Revenue/Appellant drew our attention to a judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion 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 assessee. In other words, whether it can be said to be a case of actual payment of interest amount made by the assessee within the meaning of section 43B so as to entitle them to claim its deduction? If the contention of assessee was that it tantamount to actual payment within the meaning of section 43B then the contention of the Revenue was to its contrary. As observed supra, Explanation 3C has now in cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... An Explanation to a statutory provision may fulfil the purpose of clearing up an ambiguity in the main provision or an Explanation can add to and widen the scope of the main section. If it is in its nature clarificatory then the Explanation must be read into the main provision with effect from the time that the main provision came into force. But if it changes the law, it is not presumed to be retrospective irrespective of the fact that the phrases used are it is declared or for the removal of doubts . The aforesaid paragraph cannot be read out of context. The question for consideration before the Apex Court was : Whether the salary of the employees of the appellant payable for field breaks outside India would be subjected to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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