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Whether the second proviso to s. 40(a)(ia) of the Act inserted by Finance Act, 2012 is clarificatory and retrospective in nature and disallowance under s. 40(a)(ia) of the Act by the Tribunal is justifiable where the recipient of the amount has already discharged his tax liability therein ?

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Section 40(a)(ia) of the Income Tax Act, 1961— Business Disallowance — Second proviso to section 40(a)(ia) inserted by the Finance Act, 2012 is declaratory and curative in nature and it has retrospective effect from 1st April, 2005 being the date from which sub clause(ia) of section 40 (a) was inserted — Commissioner of income tax vs. SM Anand [2019] 311 CTR (Karnataka) 795

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