The Q whether the Proviso to s. 113 is retrospective or prospective referred to Full Bench

In CIT vs. Suresh N. Gupta 297 ITR 322, the Supreme Court held that the Provio to s. 113 (which imposes surcharge on block assessments), though inserted only with effect from 1.6.2002, was applicable to searches conducted prior to that date as it was ‘clarificatory’ and ‘curative’ in nature.

HELD, however, by another Division Bench that as the said proviso was introduced with effect from 1.6.2002, i.e. with prospective effect “we are of the opinion that keeping in view the principles of law that the taxing statute should be construed strictly and a statute, ordinarily, should not be held to have any retrospective effect, it is necessary that the matter be considered by a larger Bench”.

See Also: The bane of retrospective amendments by N. M. Ranka, Advocate and Interpretation of Statutes by Sorabh Soparkar, Advocate.