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TMI Blog1996 (1) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ough supplementary cause list for analogous hearing as connected matters. These miscellaneous civil cases are registered on the applications of the Commissioner of Income-tax, Bhopal, presented under section 256(2) of the Income-tax Act, 1961, and contain the under noted question, categorised as one of law, for direction to the Tribunal to state the case and refer the same for our opinion : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the amended provisions of section 43B were applicable to the assessment year 1984-85 when the said amendment was effective from April 1, 1988 ? " This question of law is sought to be supplemented and supported by the un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n nature and was available for being applied retrospectively. It, therefore, held that the amended provisions of section 43B were applicable to assessments for the assessment years prior to April 1, 1988. The decision of the Tribunal had rested on the order passed in I. T. A. No. 1151/Ind of 1988 (Mantri Brothers v. ITO). Aggrieved, the applicant/Revenue filed applications under section 256(1) of the Income-tax Act. The applications were rejected. As the Tribunal declined to state the case and refer the question, and held that no referable question was in existence, the applicant filed these cases under section 256(2) of the Act. We have heard Shri D. D. Vyas, learned counsel for the applicant/Revenue, and counsel for the non-applicant/as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return : " The core question is whether the Tribunal rightly applied the amended provision of the aforesaid section to the assessment years prior to April 1, 1988 ? The answer depends on as to whether the amendment is declaratory of pre-existing law or it affected vested rights of the parties ? In the case of the former, it can be deemed to be retrospective and in the case of the latter, it has to be construed as prospective. In ITO v. S. K. Habibu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from April 1, 1988. The object is to advance the remedy and curb the mischief. The dictionary meaning of the word "provided" is "on condition that" "on this term". The provision supplies periphery and purpose to the point. It thus explained as to how to read and apply section 43B. It has nothing to do with the "date". It variegated and vacillated like "egocentric conception". Luculently, it controls section 43B and cannot be treated as "insipid" till March 31, 1988. In other words cases of assessment years till 1987-88, decided after April 1, 1988, have to be viewed in the light of the proviso. In New York v. United States (326 U.S. 572), Mr. Justice Douglas, in a dissenting opinion, expressed thus : " The former obviously is not true. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eous Civil Case No. 514 of 1992 (CIT v. Shree Tea Co. Indore) and several connected miscellaneous civil cases decided on January 17, 1996. Nothing substantial is urged to persuade us to take a different view in the matter. In our view, the Tribunal took the view sustainable in law. In the face of the view we take and in the light of the decisions, cited in paras 14 and 16 above (see pages 521 and 522), with which we respectfully agree, Sanghi Motors' case [1991] 187 ITR 703 (Delhi), dismissed in limine, does not tilt the balance in favour of the Revenue. On the other hand, we hold that the provision in question, as noted above, is declaratory and explanatory, and, being procedural in content and context, is retrospective like the law of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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