Ravi Agrawal Vs Union of India & Another (Supreme Court of India)
Supreme Court held that amendment to Section 80DD of the Income Tax Act by virtue of the Finance Act, 2022 is effective only from 1st April 2023 and the same cannot be given retrospective effect.
Facts- The concerns expressed by the petitioner in this writ petition have been assuaged to a certain extent inasmuch as the Parliament has amended Section 80DD of the Income Tax Act, 1961. Notably, by virtue of the Finance Act, 2022, Section 80DD was amended with effect from 01.04.2023. The petitioner mainly argues that the said amendment ought to be made retrospective.
Conclusion- Held that the plea for retrospective operation of the amendment is in the interest of the disabled persons nor can this Court give a retrospective operation to the amendment. This is particularly having regard to the fact that an insurance contract is in a sense, a commercial contract, having certain terms and conditions and the sub-stratum of the contract cannot be removed by giving a retrospective operation to the amendment. The benefit under Section 80DD of the Act would have been availed by the subscribers at the time when they have subscribed to the policy.
