Second proviso to sec.40(a)(ia) of the IT Act is curative and it has retrospective effect w.e.f. 1st April, 2005

Brief of the Case: In the case of ITO Vs Bimal Biswas, ITAT of Kolkata set aside the issue to the file of AO and directed the assessee to produce the relevant evidence in respect payees of carriage charges whether they have included the carriage receipts in the respective returns of income and paid taxes on the said income, Accordingly the provision of sec 40(a)(ia) will apply.

Facts of the Case: The Assessee derives income from wholesale

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