9911796707
|
Home
Issues:
Claim of relief under section 80J without deducting liabilities, Jurisdiction of ITO under section 154, Applicability of amended provision of section 80J with retrospective effect, Power of Commissioner (Appeals) to apply amended provisions pending appeal. Analysis: The assessee claimed relief under section 80J of the Income-tax Act on the gross value of assets without deducting liabilities. The ITO initially allowed the claim but later rectified the assessments under section 154, allowing relief on the net capital employed instead of the gross capital. The Commissioner (Appeals) upheld the ITO's decision based on the amendment to section 80J, which was in effect at the time of the appeal. The main argument raised by the assessee was that the ITO had no jurisdiction to rectify the assessment under section 154 on 6-3-1980, as the amended provisions of section 80J came into effect later on 21-8-1980. The assessee contended that the retrospective effect of the amendment was debatable, citing a relevant case law. However, the departmental representative argued that the Commissioner (Appeals) correctly applied the amended provision that was in force during the appeal. Upon consideration, the Tribunal noted that while the ITO may not have had jurisdiction to rectify the assessment on the earlier date, the Commissioner (Appeals) was justified in applying the amended provision of section 80J with retrospective effect. Referring to a Supreme Court case, the Tribunal emphasized that if an amendment with retrospective effect is introduced pending an appeal, it must be given effect by the appellate authority. The Tribunal distinguished the case law cited by the assessee and upheld the decision of the Commissioner (Appeals). In conclusion, the Tribunal dismissed the appeals, affirming the order of the Commissioner (Appeals) based on the applicability of the amended provision of section 80J with retrospective effect. The judgment highlights the importance of considering the relevant law in force at the time of appeal and the authority of the appellate body to apply such amendments retrospectively.
|
