Supreme Court- Proviso to s. 14A bars reassessment but not original assessment on the basis of the retrospective amendment

Honda Siel Power Products Ltd Vs DCIT (Supreme Court) – Failure on the part of the AO to apply section 14A of the Act when he passed the original assessment order had prima facie resulted in escapement of income. The object and purpose of the proviso to section 14A of the Act is to bar reassessment/ rectification of past cases which have attained finality and not an original assessment on the basis of retrospective amendment in the statute book. The AO was, therefore, required to disallow expenses incurred for earning exempt income in the original assessment itself. The full and true dis...