| Citation(s) |
|---|
| 2004 SLG 89 2004 SLD 89 2004 PTD 2138 (2002) 254 ITR 772 |
Supreme Court of India
Civil Appeal No. 7742 of 1997, decision dated: 11-04-2002(Appeal by special leave from the judgment and order, dated May 24, 1996, of the Delhi High Court in C. W. P. No. 1152 of 1996)
S.P. BHARUCHA, C.J.I., N.SANTOSH HEGDE AND D. M. DHARMADHIKARI, JJ
B.B. Ahuja, Senior Advocate (R.R. Dwivedi, Durgainder Singh and Ramdhir Singh Jain, Advocates) for Appellant. R.P. Bhatt, Senior Advocate, Ms. Lakhsmi Iyengar, B.V.B. Das and Ms. Sushma Suri, Advocates with him for
Respondent.
Civil Appeal No. 7742 of 1997, decision dated: 11-04-2002(Appeal by special leave from the judgment and order, dated May 24, 1996, of the Delhi High Court in C. W. P. No. 1152 of 1996)
S.P. BHARUCHA, C.J.I., N.SANTOSH HEGDE AND D. M. DHARMADHIKARI, JJ
B.B. Ahuja, Senior Advocate (R.R. Dwivedi, Durgainder Singh and Ramdhir Singh Jain, Advocates) for Appellant. R.P. Bhatt, Senior Advocate, Ms. Lakhsmi Iyengar, B.V.B. Das and Ms. Sushma Suri, Advocates with him for
Respondent.
K. M. SHARMA
VS
Income Tax OFFICER
Law: Income Tax Act, 1961
Section: 149,150,150(1),150(2)
(a) Income tax.....Reassessment Limitation Exception .to bar of limitation-Reassessment on basis of order under Income tax Act Amendment with effect from April 1,1989, extending exception to reassessment on basis of order passed by a Court in any other proceeding under any other law -Excluding Assessments already barred before April 1, 1989 -Amendment prospective Bar of limitation continues in cases which are already barred before April 1, 1989 Indian Income Tax Act, 1961, Ss. 149 & 150(1), (2) (as amended with effect from April 1, 1989): (b) Interpretation of Statutes Strict interpretation applies also to provisions regulating limitation (c) Income tax General principles Provisions imposing liability Not retrospective Law applicable Law in force in assessment years -Procedural provisions Not retrospective so as to affect finality of assessment unless there is clear contrary intendment. [K. M. Sharma v. ITO (1996) 221 ITR 202 reversed]. The amendment to subsection (1) of section 150 of the Income Tax Act, 1961, extending the bar of limitation in cases of orders passed by a Court in proceedings under any other law is not expressed to be retrospective and, therefore, has to be held to be only prospective. The amendment to section 150(1), which intends to lift the embargo of the period of limitation under section 149 to enable the authorities to reopen assessments not only on the basis of orders passed in proceedings under the Income tax Act, but also on the basis of an order of a Court in any proceedings under any law has to be applied prospectively on or after April 1, 1989, when the amendment was introduced. The provisions of subsection (1), therefore, can have only prospective operation to assessments which have not become final due to the expiry of the period of limitation prescribed for assessments under section 149. The plain language of subsection (2) of section 150 clearly restricts the application of subsection (1) to enable the authorities to reopen assessments which have not already become final on the expiry bf the period of limitation prescribed under section 149. Subsection (2), in placing an embargo on reopening of assessments which have…
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