Retrospective amendment does not mean failure to disclose material facts – Bombay HC

CIT vs. M/s K. Mohan & Co. (Exports) (Bombay High Court)-In both the cases, the assessment was sought to be reopened on account of retrospective amendment to Section 80HHC introduced by the Taxation Laws Amendment Act, 2005 with effect from 1^st April 1998. If the legislature amends the provisions of the Act with retrospective effect, it cannot be said that there was failure on the part of the assessee to disclose fully and truly all material facts relevant for the purpose of assessment.

HIGH COURT OF BOMBAY
INCOME TAX APPEAL (L) NO. 2347 OF 2010

and  INCOME TAX APPEAL NO.1263 OF 2011

The Commissioner of Income Tax ­ 17, Mumbai
Versus

M/s. K. Mohan & Co. (Exports) (Regd.)

ORDER
DATE : 1^st July, 2011.

P.C.:

1. In both these appeals, the question raised by the Revenue is whether the Income Tax Appellate Tribunal was justified in cancelling the reassessment proceedings initiated by the assessing officer beyond the period of four years from the end of relevant assessment year.

2. In both the cases, the assessment was sought to be reopened on account of retrospective amendment to Section 80HHC introduced by  the Taxation Laws Amendment Act, 2005 with effect from 1^st April 1998. If the legislature amends the provisions of the Act with retrospective effect, it cannot be said that there was failure on the part of the assessee to disclose fully and truly all material facts relevant for the purpose of assessment.