Commissioner of Income-tax v. Reliance Energy Ltd
[Citation -2013-LL-0930-142]
| Citation | 2013-LL-0930-142 |
|---|---|
| Appellant Name | Commissioner of Income-tax |
| Respondent Name | Reliance Energy Ltd. |
| Court | SUPREME COURT |
| Relevant Act | Income-tax |
| Date of Order | 30/09/2013 |
| Judgment | View Judgment |
| Keyword Tags | legal position • retrospective applicability |
| Bot Summary: | JUDGMENT Order Heard learned counsel for the parties. Learned counsel for the Revenue submits that the question involved in the present special leave petition is in respect of retrospectivity of section 234D of the Income-tax Act, 1961 and the decision of the Bombay High Court in Director of Income-tax v. Delta Air Lines Inc. 2013 358 ITR 367 has no application and the High Court erred in dismissing the appeal preferred by the Revenue while keeping the question of retrospectivity of section 234D open. Learned counsel for the assessee places reliance on Explanation 2 inserted in section 234D of the Act by the Finance Act, 2012, with effect from June 1, 2003. Explanation 2 which has been inserted in section 234D of the Act reads as under: Explanation 2.-For the removal of doubts, it is hereby declared that the provisions of this section shall also apply to an assessment year commencing before the 1st day of June, 2003, if the proceedings in respect of such assessment year is completed after the said date. The High Court was concerned with the appeal relating to the assessment year 1998-99. Having regard to the legal position which has been clarified by Parliament by insertion of Explanation 2 in section 234D of the Act, in the present case, retrospectivity of section 234D does not arise. Having regard to above position, the view of the High Court in relying upon the decision of the Bombay High Court in Delta Air Lines Inc. cannot be said to be erroneous. |