[Income tax deductions] Explanation 3C to Section 43B(d) of Income Tax act clarificatory, does not add new condition: Supreme Court

"Explanation 3C is clarificatory – it explains Section 43B(d) as it originally stood and does not purport to add a new condition retrospectively", the Court said.
[Income tax deductions] Explanation 3C to Section 43B(d) of Income Tax act clarificatory, does not add new condition: Supreme Court
Justices RF Nariman and BR Gavai

The Supreme Court on Wednesday had occasion to observe that Explanation 3C to Section 43B of the Income Tax Act, 1961 is only clarificatory and meant to curb the misuse of Section 43B, which lays down that income tax deductions on certain transactions can only be claimed after actual payment and not merely on accrual basis (MM Aqua Technologies Ltd. v. Commissioner of Income Tax, Delhi-III)

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