2013 (10) TMI 315 - HC - Income Tax

Deduction u/s 80HHC(3) - Amendment of Taxation Laws (Second Amendment) Act, 2005 - Held that - Keeping in mind that the Supreme Court had transferred all the matters to the Gujarat High Court in order to avoid confusion and difficulties in enforcement of conflicting judgments of different High Courts, we are of the view that it would be appropriate in these writ petitions to follow the judgment of the Gujarat High Court - In the circumstances, for the above reason, the Writ Petitions, other than the first four Writ Petitions, are disposed of in the terms of the order and judgment of the Gujarat High Court. The first four writ petitions, in any event, stand disposed of by the order and judgment of the Gujarat High Court.

Summary

Issues:
Challenge to insertion of conditions in Section 80 HHC (3) of the Act with retrospective effect.

Analysis:
The judgment pertains to the challenge against the insertion of conditions in the third and fourth provisos to Section 80 HHC (3) of the Act with retrospective effect. Similar writ petitions were filed in various High Courts, leading to a transfer petition to the Supreme Court. The Supreme Court directed the transfer of all petitions to the High Court of Gujarat. The High Court of Gujarat, in a judgment dated July 02, 2012, quashed the impugned amendment to the extent that it could be applied from the date of the amendment and not for earlier assessment years. Following this judgment, the Bombay High Court disposed of all related writ petitions, except the first four, in alignment with the Gujarat High Court's decision to avoid conflicting judgments among different High Courts. The remaining petitions were disposed of based on the Gujarat High Court's judgment, with no costs imposed. This uniform approach was adopted for all similar writ petitions.

Overall, the judgment addresses the issue of the retrospective effect of the conditions inserted in Section 80 HHC (3) of the Act. It highlights the importance of consistency in decisions across High Courts to prevent confusion and ensure uniformity in the enforcement of judgments. The judgment emphasizes the significance of following precedent set by higher courts to maintain legal coherence and avoid conflicting interpretations of the law.