Bombay H.C : When Legislature amends provisions of Act with retrospective effect, it cannot be said that there was failure on part of assessee to disclose fully and truly all material facts at relevant time and, thus, reassessment proceedings can not be initiated in such a case

High Court Of Bombay

CIT Vs. K. Mohan And Co. (Exports) (Regd.)

Section : 147, 80HHC

J.P. Devadhar And Smt. R.P. Sondurbaldota, JJ.

IT Appeal (L) No. 2347 Of 2010

IT Appeal No. 1263 Of 2011

July 1, 2011

JUDGMENT

1. In both these appeals, the question raised by the Revenue is whether the Income-tax Appellate Tribunal was justified in cancelling the reassessment proceedings initiated by the Assessing Officer beyond the period of four years from the end of the relevant assessment year.

2. In both the cases, the assessment was sought to be reopened on account of the retrospective amendment to section 80HHC introduced by the Taxation Laws (Amendment) Act, 2005, with effect from April 1, 1998. If the Legislature amends the provisions of the Act with retrospective effect, it cannot be said that there was failure on the part of the assessee to disclose fully and truly all material facts relevant for the purpose of assessment.

3. In this view of the matter, we see no reason to interfere with the order of the Tribunal. Both the appeals are accordingly dismissed with no order as to costs.

[Citation : 349 ITR 653]

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