Goldtex Furnishing Industries Vs UOI & Ors. (Delhi High Court)
The writ petition challenged a notice dated 30.03.2007 issued under Sections 147/148 of the Income Tax Act, 1961, seeking to reopen assessment based on a retrospective amendment to Section 80HHC. At the initial stage, a Coordinate Bench of the Court stayed the reassessment proceedings on 07.11.2007, observing prima facie that the notice appeared to be beyond the period of limitation and was issued solely due to the retrospective amendment to Section 80HHC, of which the assessee could not have been aware. Subsequently, the retrospective operation of the amendment to Section 80HHC was held to be ultra vires by the Gujarat High Court and that view was affirmed by the Supreme Court in Avani Exports. The Delhi High Court had earlier followed this position in Saroj Dassani v. Union of India, holding that irrespective of turnover, the amendment to Section 80HHC could not be applied retrospectively. Applying the same reasoning, the Court held that the impugned reassessment notice, founded entirely on the invalid retrospective amendment, could not be sustained. Accordingly, the notice dated 30.03.2007 issued under Section 148 was quashed and the writ petition was allowed, with all pending applications disposed of.
