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2018 (1) TMI 608 - HC - Income TaxRetrospective amendment to Sections 28 and 80 HHC and the validity of CBDT Circular dated 17.1.2006 (no. 2 of 2006) made in the light of the amendments questioned - Held that:- Supreme Court in ‘Commissioner of Income-tax vs. Avani Exports’ (2015 (4) TMI 193 - SUPREME COURT), which affirmed the declaration and held that the retrospectivity ascribed to the amendments, was unconstitutional. Consequently, the amendments became, in effect, prospective in nature. This Court notices that in the meanwhile, a Division Bench of this Court in ‘Pawan Kumar Jain vs. Union of India’ (2014 (8) TMI 32 - DELHI HIGH COURT) had also concluded that the amendment could not be treated as retrospective and directed further relief. In the light of these developments, the Court is of the opinion that the provisions are to be treated as prospective and not retrospective; the reliefs in these proceedings are therefore, to be granted. Writ petitions are allowed in terms of the declaration of law in Avani Exports; any demands made or benefits sought to be curtailed or withdrawn, are declared as illegal.
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