9911796707
TMI Blog1998 (5) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ered from the Tribunal's order, are as follows: The assessee-respondent claimed deduction under section 35CCA on account of donation of Rs. 2 lakhs to a society for integrated development. In view of the withdrawal of approval granted to the society by the prescribed authority for the purpose of section 35CCA with retrospective effect, the claim for deduction was disallowed by the Assessing Officer. The order passed by him was confirmed in appeal by the Commissioner of Income-tax (Appeals). The Appellate Tribunal, however, observed that there being no provision either in the Income-tax Act or in the rules framed thereunder as regards withdrawal of approval with retrospective effect, the Assessing Officer was directed to reconsider the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an expenditure incurred by way of payment of any sum to an association or institution, which has as its object to undertake and support programmes of rural development. Giving retrospective effect to withdrawal of approval granted to a society for the above purposes, offends against the basic rules of construction. Even in Escorts Ltd.'s case [1993] 199 ITR 43, the Supreme Court has not given retrospective effect. It has merely explained the existing position as is evident from the following passage: "28. It is evidently on the basis of this recommendation that clause (iv) of sub-section (2) of section 35 was amended to make express what was implicit in it. The amendment introduced the words 'or any other' in the said clause. After amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral principle that statutes are not to be held to act retrospectively unless a clear intention to that effect is manifested." This principle, as laid down in Colonial Sugar Refining Company Ltd. v. Irving [1905] AC 369 (PC), has been followed by the Supreme Court in Garikapati Veeraya v. Subbiah Choudhry (N.), AIR 1957 SC 540. Of course, this judgment relates to right of appeal but the underlying principle is the same. Any alteration of substantive rights in existence is not to be readily construed to affect adjudication of pending proceedings by giving retrospective effect to the statute. The Supreme Court in Garikapati Veeraya v. Subbiah Choudhry (N.), AIR 1957 SC 540 has pointed out: "The golden rule of construction is that, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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