Second Proviso to Sec 40(a)(ia) being not curative by nature does not have retrospective effect: HC

Brief of the case: The Hon’ble Kerala HC in the case of Thomas George Muthoot vs. CIT held that the second proviso to sec 40(a)(ia) is not curative by nature , the same is an additional remedy to provide non-disallowance in certain tax deduction default cases. Thus, being not curative the second proviso does not have retrospective effect. Facts of the case: The assessee is a partner in a firm who paid interest on funds withdrawn from firm. The said payment was made to firm without deducting tax at source. As such the AO disallowed the same u/s 40(a)(ia) of the Act. Thus, AO made an addi...