Amended tax laws not retrospective unless specified
Amended tax laws not retrospective unless specified
this case was published in ET on 3-6-2009
and argued by Bhupendra Shah
In what would come as relief to assessees who have sought stays on tax demand by
income tax authorities before October 1, 2008, the income tax appellate tribunal
ruled that any amendment made to a tax law by the government is not
retrospective unless specified in the amended law, reports Ram Narsinghdev
Sahgal from Mumbai. The tribunal ruling came in connection with a case between
Mumbaibased Ronuk Industries (assessee) and the I-T department, which made a tax
demand of Rs 36.11 lakh of the former for assessment year 2004-05. The
government amended the relevant section of the I-T Act, Sec 254 (2A), on October
1, 2008, which says that a stay cannot be extended beyond 365 days. The tribunal
ruling came in connection with a case between Mumbai-based Ronuk Industries
(assessee) and the I-T department, which made a tax demand of Rs 36.11 lakh of
the former for the assessment year 2004-05
Tata Communications Ltd vs. ACIT (ITAT Mumbai – Special Bench)
(
Despite Third Proviso to s. 254(2A), Tribunal has power to extend stay beyond
365 days if delay not attributable to assessee