New Conditions in clarificatory nature to existing Tax Law can’t be presumed to Be Retrospective: Supreme Court [Read Judgment] Read More
The Apex Court held that the new conditions in clarificatory nature to existing Tax Law can not be presumed to be retrospective in nature.
The assessee, M.M. Aqua Technologies Ltd. claimed a deduction of Rs.2,84,71,384/- under Section 43B based on the issue of debentures in lieu of interest accrued and payable to financial institutions. By an order dated 29th October, 1998, the Assessing Officer rejected the Appellant’s contention by holding that the issuance of debentures was not as per the original terms and conditions on which the loans were granted, and that interest was payable, holding that a subsequent change in the terms of the agreement, as they then stood, would be contrary to Section 43B(d), and would render such amount ineligible for deduction.
