Supreme Court Of India
CIT Vs. Reliance Energy Ltd.
Assessment Year : 1998-99
Section : 234D
R.M. Lodha And Shiva Kirti Singh, JJ.
IT Appeal No. 2193 Of 2009
Special Leave Petition No. 14013 Of 2013
September 30, 2013
ORDER
1. Heard learned counsel for the parties.
2. Learned counsel for the Revenue submits that the question involved in the present special leave petition is in respect of retrospectivity of s. 234D of the IT Act, 1961 (for short, ‘Act’) and, therefore, the decision of the Bombay High Court in Director of IT (International Taxation) v. Delta Air Lines Inc. [2012] 21 taxmann.com 511 has no application and the High Court erred in dismissing the appeal preferred by the Revenue while keeping the question of retrospectivity of s. 234D open.
3. Learned counsel for the assessee places reliance on Expln. 2 inserted in s. 234D of the Act by the Finance Act, 2012 w.e.f. 1st June, 2003.
4. Explanation 2 which has been inserted in s. 234D of the Act reads as under :
“Explanation 2.— For the removal of doubts, it is hereby declared that the provisions of this section shall also apply to an assessment year commencing before the 1st day of June, 2003 if the proceedings in respect of such assessment year is completed after the said date.”
5. The High Court was concerned with the appeal relating to the asst. yr. 1998-99. It is admitted case that the assessment of that year was completed prior to 1st June, 2003.
6. Having regard to the legal position which has been clarified by the Parliament by insertion of Expln. 2 in s. 234D of the Act, in the present case, retrospectivity of s. 234D does not arise.
7. Having regard to above position, the view of the High Court in relying upon the decision of the Bombay High Court in Delta Air Lines Inc. (supra) cannot be said to be erroneous.
8. Special leave petition is dismissed.
[Citation : 358 ITR 371]
