2000 (1) TMI 2

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..... the view that the conclusion of an earlier Bench of three learned judges was difficult to accept. The issue relates to whether Explanation 2 to section 40(b) of the Income-tax Act, 1961, introduced with effect from April 1, 1985, is prospective in operation or only declaratory. In Brij Mohan Das Laxman Das v. CIT [1997] 223 ITR 825 (SC), two learned judges concluded that the said Explanation was .....

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..... C). The observations in Rashik Lal's case [1998] 229 ITR 458 (SC) relating to the said Explanation must, therefore, be treated as obiter dicta. The conclusion of this court in the earlier cases of Brij Mohan Das Laxman Dos [1997] 223 ITR 825 and Suwalal Anandilal Jain [1997] 224 ITR 753 still represents the correct exposition of the law. Following these decisions, the civil appeal must be dismiss .....

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