Case Law Details
DCIT Vs Navrang Infrastructure Pvt. Ltd. (Madras High Court)
Introduction: The Madras High Court recently addressed the retroactive application of Section 5 of the Amended Prohibition of Benami Property Transaction Act. The appellants challenged the order of the Appellate Tribunal, arguing that the amended act should be applied retrospectively. However, the court’s decision and subsequent developments shed light on the complexities of the legal landscape.
Detailed Analysis:
Section 5 of the Prohibition of Benami Property Transactions Act, 1988, as amended in 2016, became the focal point of contention. The appellants asserted that the amendment, which was deemed punitive in nature, should have retrospective effect. They relied on a detailed judgment passed by the Madras High Court on 17.11.2023, where it was argued that the Tribunal’s decision was solely based on the Supreme Court’s judgment in the case of Union of India vs. Ganapati Dealcom P Ltd.
The Supreme Court’s ruling, excerpted in the judgment, declared certain provisions unconstitutional and emphasized the prospective application of Section 5 of the 2016 Amendment Act. Despite this, the Tribunal in the order under scrutiny allowed for potential remedies if the Supreme Court reviews its judgment.
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