Case Law Details
Chandan Garments Private Ltd. Vs PCIT (ITAT Indore)
Arguments Advanced by the Assessee-Appellant:
1. That the case pertains to A.Y 2017-18 (01.04.2016 to 31.03.2017) and the rate of tax u/s 115BBE was 30%+3%Cess as on first day of the Previous-Year i.e. 01.04.2016, therefore the tax-rate of 30%+3% Cess shall apply and not the higher rate.
2. That the higher rate of tax was prescribed in section 115BBE through an amendment made vide Taxation Laws (Second Amendment) Act, 2016 and the said amendment received assent of the President of India on 15.12.2016 and therefore the amendment shall apply prospectively w.e.f. 15.12.2016 and not retrospectively.
3. That survey in assessee’s case was conducted on 19.09.2016 which was prior to 15.12.2016 and therefore the higher rate of tax is not applicable to it, the tax-rate of 30%+3% Cess as existing in section 115BBE as on 01.04.2016 shall apply.
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