Law: Wealth Tax Rules, 1957

Section: 1BB

Law: Wealth Tax Act, 1957

Section: 16A,7(4),46

Wealth tax--- ---- Valuation of assets---Application of R.1-BB---Rule 1-BB applicable to assessment for the period from 1-4-1979 to 31-3-1989---Rule 1-BB not applicable retrospectively to pending cases relating to assessment years prior to April 1, 1979---Rule against retrospectivity. The general principle of interpretation of statutes is that they would operate prospectively unless they expressly provide for retrospective operation. The substantive laws would ordinarily be enforced prospectively whereas procedural laws can-be enforced with respect to pending cases. This is subject to provisions made to the contrary. When Notification No.169(E) was issued on March 30, 1979 (see (1979) 117 ITR (St.) 51), under section 46 of the Wealth Tax Act, 1957, by the Central Board of Direct Taxes amending the Wealth Tax (Amendment) Rules, in rule 1(2), it was specifically mentioned that such amended rules would come into force on April 1, 1979. It was under rule 2 of these Amendment Rules that rule 1-BB was ordered to be inserted after rule 1-B. Rule 1-BB, even though procedural law, cannot be made applicable retrospectively to cases pending with respect to the assessment orders prior to April 1, 1979. Rule 1-BB would apply to the assessments for the period April 1, 1979 to March 31, 1989, during which period the said rule remained in force. Sutlej Chit Fund and Financiers (P.) Ltd. v. CIT (1986) 1,61 ITR 174 (P & H) ref. JUDGMENT A. L. BAHRI. J.---This case relates to the assessment years 1973-74 and 1974-75. On four reference applications filed before the Income-tax Appellate Tribunal, Amritsar, by the Revenue as well as by the assessee, the following questions of law were referred to this Court for adjudication: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that rule 1-BB of the Wealth Tax Rules, would operate retrospectively so that the valuation of the assessee's building, as on March 31, 1973, and March 31, 1974, should be made in accordance with the said rule? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the Wealth Tax Officer should…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492