HC : Expense disallowance u/s. 40(a)(ia) for TDS default cannot be invoked in Trust’s case pre-April’19

Karnataka HC upholds ITAT order, rules that expense disallowance u/s. 40(a)(ia) for TDS default cannot be invoked in assessee-Trust’s case for AY 2006-07;  Assessee-Trust was running a hospital, during subject AY, assessee had failed to deduct TDS u/s. 194J on certain doctors payments and therefore AO had invoked Sec. 40(a)(ia); HC observes that insertion of Explanation 3 to Sec. 11 vide Finance Act, 2018 “clearly indicates that the same would stand applicable only from 01.04.2019”; Thus, HC upholds ITAT order that Sec. 40(a)(ia) cannot be invoked in present case; Separately, applying the same analogy, HC holds that amendment to Sec. 11(6) vide Finance (No. 2) Act, 2014  [restricting depreciation deduction where cost of assets has already been allowed as application of income] is prospective in nature.  :HC