Sections 43B & 40A Income Tax Act | Which Provision Prevails When Both Commence With Non-Obstante Clause? Court Clarifies: Madras High Court

The Madras High Court, in a recent judgment, provided clarity on the application of two provisions under the Income Tax Act, namely Section 40A(7)(b) and Section 43B, which both begin with non-obstante clauses. The case at hand, M/s Sanmar Speciality Chemicals Limited v. The Assistant Commissioner of Income-Tax, revolved around the issue of gratuity fund provisions made by the appellant, a company engaged in manufacturing and selling specialty chemicals and…