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TMI Blog2024 (7) TMI 1528X X X X Extracts X X X X X X X X Extracts X X X X ..... equent assessment years. Also Supreme Court in SedcoForex International Drill. Inc. [ 2005 (11) TMI 25 - SUPREME COURT ] has held that a retrospective provision in a tax Act which is for the removal of doubts cannot be presumed to be retrospective, even where such language is used, if it alters or changes the law as it earlier stood. Following the aforesaid judgment, we dismiss the instant appeal. - Hon'ble Mr. Justice Yashwant Varma And Hon'ble Mr. Justice Ravinder Dudeja For the Appellant : Mr. Sanjay Kumar, Ms. Esha, Advs. For the Respondent : None. ORDER 1. Mr. Kumar, learned counsel appearing for the appellant draws our attention to the final judgment rendered in ITA 204/2022 inter partes and where while dealing with an ident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempt income, notwithstanding anything to the contrary contained in this Act. 7. This amendment will take effect from 1st April, 2022 and will accordingly apply in relation to the assessment year 2022-23 and subsequent assessment years. (emphasis supplied) 6. Furthermore, the Supreme Court in SedcoForex International Drill. Inc. v. CIT [2005] 279 ITR 310 (SC) ; (2005) 12 SCC 717 has held that a retrospective provision in a tax Act which is for the removal of doubts cannot be presumed to be retrospective, even where such language is used, if it alters or changes the law as it earlier stood. The relevant extract of the said judgment is reproduced hereinbelow (page 316 of 279 ITR) : The High Court did not refer to the 1999 Explanation in uph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Bill, 1999, substituted the Explanation to section 9(1)(ii) (or what has been referred to by us as the 1999 Explanation). Section 5 of the Bill expressly stated that with effect from April 1, 2000, the substituted Explanation would read : 'Explanation. For the removal of doubts, it is hereby declared that the income of the nature referred to in this clause payable for (a) service rendered in India ; and (b) the rest period or leave period which is preceded and succeeded by services rendered in India and forms part of the service contract of employment, shall be regarded as income earned in India.' The Finance Act, 1999, which followed the Bill incorporated the substituted Explanation to section (9)(1)(ii) without any change. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 779 dated September 14, 1999 ([1999] 240 ITR (St.) 3, 10) containing Explanatory Notes on the provisions of the Finance Act, 1999, in so far as it related to direct taxes. It said in paragraphs 5.2 and 5.3 : '5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall be regarded as income earned in India, so as to specifically provide that any salary payable for rest period or leave period which is both preceded and succeeded by service in India and forms part of the service contract of employment will also be regarded as income earned in India. 5.3 This amendment will take effect from April 1, 2000, and will accordingly, apply in relation to the assessment year 2000-2001 and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een reiterated by the Supreme Court in M. M. Aqua Technologies Ltd. v. CIT [2021] 436 ITR 582 (SC) ; 2021 SCC OnLine SC 575. The relevant portion of the said judgment is reproduced hereinbelow (page 597 of 436 ITR) : Second, a retrospective provision in a tax Act which is for the removal of doubts cannot be presumed to be retrospective, even where such language is used, if it alters or changes the law as it earlier stood. This was stated in SedcoForex International Drill. Inc. v. CIT [2005] 279 ITR 310 (SC) (2005) 12 SCC 717 as follows (page 318 of 279 ITR) : '17. As was affirmed by this court in CIT v. Goslino Mario [2000] 241 ITR 312 (SC) ; (2000) 10 SCC 165 a cardinal principle of the tax law is that the law to be applied is that whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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