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6.4 In view of the above curative amendment, therefore, if the workman is employed for less than 300 days in the year of joining but his period of stay exceeds 300 days in the succeeding year, then such workman would qualify as 'eligible workman' in the succeeding year and his wages shall be eligible for additional deduction u/s 80JJAA of the Act. According to Ld. AR, the above amendment being a curative and beneficial amendment ought to be held as retrospective in nature and hence applicable to the year in question as well. He thus argued that, the assessee had rightly claimed deduction u/s 80JJAA in respect of the new employees who did not complete continuous employment of more than 300 days during their respective years of joining i.e., FYs 2010-11 & IT (TP) A No.68/Chny/2018 (AY 2014-15) M/s. MRF Ltd.

16.12 It is sought to be contended by Sri. K.V. Aravind, learned Senior Panel counsel that the fact that such an interpretation could not be given is established by the curative amendment carried out in the year 2018 wherein it is clarified that an assesses whose employee completes 300 days in a second year would also be entitled to a deduction for three years therefrom. Thus he submits that the amendment having been brought into force in the year 2018 the present matter relating to the year 2007-2008, the said curative or clarificatory amendment would not come to the rescue of the Assessee and as such, the finding of the Tribunal in this regard is required to be set aside.
16.13 We are unable to agree with such a submission- the amendment of the year 2018 though claimed curative by Sri. Aravind, we are of the considered opinion that the same is more an explanatory amendment or a clarificatory amendment which clarifies the methodology of applying section 80JJ-AA of the Act. If the submission of Sri. K.V. Aravind is accepted, then no employer/assessee would be able to fulfil the requirement of employing its labour/assessee prior to 5th June of that assessment year so as to claim the benefit of Section 80JJ-AA. Such a narrow and pedantic approach is impermissible. It also being on account of the fact that section 80JJ-AA relating to deductions under Chapter is an incentive and, therefore, has to be read liberally. In this aspect, we are also supported by the decision of the Apex Court in Mavilayi Service Co-operative Bank Ltd.'scase (supra), wherein the Apex Court has held that a benevolent provision has to be read liberally and reasonably and if there is an ambiguity in favour of the Assessee.

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curative amendment made by insertion of proviso to Section 80JJAA, by the Finance Act, 2018.
6.8 We now come to the AO's finding that, the relevant AY 2014-15 being the 4th year of claim, the deduction u/s 80JJAA was not allowable.

As noted earlier, the assessee had recruited employees in FY 2010-11 and FY 2011-12 in three of its units and these employees did not complete 300 days of employment in that respective year of joining but completed 300 days when taking into account the succeeding FY (i.e., in FY 2011-12 and FY 2012-13 respectively). Having regard to the plain language used in the above referred proviso to Section 80JJAA, the assessee is noted to have rightly considered the 1st year of employment of those employees as FY 2011-12 (for employees who joined in FY 2010-11). Consequently, the assessee was eligible to claim deduction u/s 80JJAA in FY 2011-12, FY 2012-13 and FY 2013-14 (i.e., subject AY 2014-15) for employees joined in FY 2010-11. In the light of the aforesaid facts, we note that, the assessee company had claimed deduction only for a period of 3 years and not 4 years, as wrongly assumed by the AO. In support of this, the Ld.AR rightly drew our attention to the certificate issued by the Chartered Accountant in Form 10DA, which is found to be placed at Page No. 98 of the convenience compilation; wherein we note that, the relevant details in respect of this issue, such as, name of employee, date of joining and IT (TP) A No.68/Chny/2018 (AY 2014-15) M/s. MRF Ltd.