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TMI Blog1982 (9) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... ffective from1-1-1979. At the time of filing of the return for the assessment year 1979-80, the assessee excluded the properties partitioned in the said partial partition dated25-1-1979. The WTO, however, ignored the claim of the assessee on the ground that according to the new provisions of section 171(9) of the Income-tax Act, 1961 ('the 1961 Act') inserted by the Finance (No. 2) Act, 1980, with effect from 1-4-1980, the immovable property belonging to the HUF will be assessed as it was assessed in the wealth-tax assessment of the assessee for the assessment year 1978-79. This is because similar amendment was made in the Act. The assessee was aggrieved and went in appeal before the AAC who, however, rejected the claim of the assessee as f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses for the assessment year under consideration." 3. Shri O. P. Sapra, the learned counsel for the assessee, repeated the same arguments as advanced before the lower authorities. Shri S. Ramaswamy, the learned departmental representative, supported the orders of the lower authorities. 4. After careful consideration of the rival submissions, we are of the view that the amended section 20A inserted by the Finance (No. 2) Act, 1980, with effect from1-4-1980would not be applicable to the assessment year 1979-80. Section 20A reads as follows : "Where a partial partition has taken place after the 31st day of December, 1978, among the members of a Hindu undivided family hitherto assessed as undivided --- (a) such family shall continue to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after enquiry, is satisfied that the joint family property has been totally partitioned amongst the various members or groups of members in definite portions, he makes an order to that effect and makes assessment on the net wealth of the undivided family for the assessment year or years for which the family remained undivided. Where such partition has taken place on the last day of the previous year, the assessment for the relevant assessment year is also made on the Hindu undivided family. Each member or group of members is jointly and severally liable for the tax assessed on the net wealth of the joint family. Where the Wealth-tax Officer is not satisfied that the whole of the property of the Hindu undivided family has been partitioned, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 1980, and will accordingly apply in relation to the assessment year 1980-81 and subsequent years." From the above memorandum, it is explicitly made clear that this amendment will take effect from1-4-1980and will, accordingly, apply in relation to the assessment year 1980-81 and subsequent years. Their Lordships of the Supreme Court in the case of K. P. Varghese v. ITO [1981] 131 ITR 597 held : ". . . It is true that the speeches made by the Members of the Legislature on the floor of the House when a Bill for enacting a statutory provision is being debated are inadmissible for the purpose of interpreting the statutory provision but the speech made by the mover of the Bill explaining the reason for the introduction of the Bill can c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not justified in giving retrospective effect and applying the said amendment to the assessment year 1979-80. Reliance is also well placed on the decision of the Supreme Court in the case of Karimtharuvi Tea Estate Ltd. v. State of Kerala [1966] 60 ITR 262 for the proposition that the 1961 Act which stands amended on the 1st day of April of any financial year must apply to the assessment of that year. Any amendments in the said Act which come into force after the 1st day of April of any financial year would not apply to the assessment for that year even if the assessment is actually made after the amendments come into force. 8. The general rule of construction of statute is that where an Act is expressed to come into operation on a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this view of the matter, we hold that the assessment of the assessee for the assessment year 1979-80 has to be completed on the basis of section 20 without taking into account the amended section 20A which came into operation only from1-4-1980. 9. The position, however, will be entirely different for the assessment year 1980-81 onwards. Whatever finding that has been recorded by the ITO regarding this partial partition shall be treated as null and void in view of the amended section of the Act read with section 171(9) of the 1961 Act. 10. By taking this view we treat the postponement of the commencement of the amended provision as a special concession granted to the assessee by the Parliament deliberately and consciously. Even if it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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