In Brief
This case concerns whether a 2010 amendment to Section 40(a)(ia) of the Income Tax Act (TDS deduction provisions) applies retrospectively to earlier assessment years. Calcutta Export Company claimed a deduction for commission expenses paid to contractors when TDS was remitted late (August 2005 vs the pre-2010 requirement of before March 31). The Supreme Court held that the 2010 amendment, which relaxed the deadline to the income-tax return due date, was curative and remedial in nature. Consequently, it applies retrospectively from the original provision's insertion (2005), not just from 2010 onwards. This ensures bona fide taxpayers who paid TDS before filing their returns—especially small traders—are not subjected to disproportionate hardship. The Court's appeal was dismissed and High Court's judgment upheld."
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