2013 (2) TMI 628 - HC - Income Tax

Reassessment - reopening after 4 years - notice u/s 148 - held that - If the Legislature amends the provisions of the Act with retrospective effect it cannot be said that there was failure on the part of the assessee to disclose fully and truly all material facts relevant for the purpose of assessment. - Decided in favor of assessee.

Summary

The High Court Bombay dismissed the appeals questioning the cancellation of reassessment proceedings initiated by the Assessing Officer beyond four years from the end of the relevant assessment year. The reassessment was based on a retrospective amendment to section 80HHC introduced by the Taxation Laws (Amendment) Act, 2005. The court ruled that if the Legislature makes a retrospective amendment, it cannot be considered a failure on the part of the assessee to disclose all material facts. The appeals were dismissed with no costs.