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2014 (12) TMI 980 - HC - Income TaxRevision of order of AO u/s 264 - Retrospective amendment to be considered or not - Whether the Commissioner, while revising an order of the AO u/s 264, could take into account a retrospective amendment made after the order of the AO – Held that:- In Commissioner of Income-Tax vs. Kamla S. Asrani [1990 (8) TMI 53 - BOMBAY High Court] it has been held that when the law is amended with retrospective effect, the court, when it decides any proceeding, has to apply such retrospectively amended law as if it were in force at all material times - The application of the relevant law to the problem raised in the reference before the High Court normally is not excluded merely because at the date when the Tribunal decided the question, the relevant law was not or could not be brought to its notice – the discussion also applies to the powers of revision of the Commissioner u/s 264 - as in the case of Sections 256(1) and 256(2), the revenue is seeking to draw an artificial distinction between Sections 263 and 264, in relation to the applicability of the retrospectively amended law, which would not be permissible. If one has regard to the applicable law (applicable by virtue of a retrospective amendment), there is clearly an over-assessment of the assessee - assessee has been charged more tax than what is due and payable by him - The Commissioner is not only entitled but is duty bound to correct the assessment in revision – thus, the order is set aside and the revenue is directed to consider the assessee's claim of deduction u/s 80 HHC – Decided in favour of assessee.
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