Commissioner of Income-tax-I v. M/s. Reliance Energy Ltd
[Citation -2013-LL-0930-145]

Citation 2013-LL-0930-145
Appellant Name Commissioner of Income-tax-I
Respondent Name M/s. Reliance Energy Ltd.
Court SUPREME COURT
Relevant Act Income-tax
Date of Order 30/09/2013
Judgment View Judgment
Keyword Tags prospective effect • refund of tax
Bot Summary: 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-I Vs. M/s Delta Air Lines Inc. 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 inserted in Section 234D of the Act by the Finance Act, 2012 with effect from 01.06.2003. Explanation 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 the Parliament by insertion of Explanation 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 M/s Delta Air Lines Inc. cannot be said to be erroneous.


ITEM NO.63 COURT NO.3 SECTION IIIA SUPREME COURT OF INDIA RECORD OF PROCEEDINGS Petition(s) for Special Leave to Appeal (Civil) No(s).14013/2013 (From judgement and order dated 19/07/2012 in ITA No.2193/2009 of HIGH COURT OF BOMBAY) COMMISSIONER OF INCOME TAX-I Petitioner(s) VERSUS M/S. RELIANCE ENERGY LTD. Respondent(s) (With prayer for interim relief and office report ) Date: 30/09/2013 This Petition was called on for hearing today. CORAM : HON'BLE MR. JUSTICE R.M. LODHA HON'BLE MR. JUSTICE SHIVA KIRTI SINGH For Petitioner(s) Mr. Arijit Prasad, Adv. Mr. D.L. Chidananda, Adv. Mr. Sahil Tagotra, Adv. Mrs Anil Katiyar,Adv. For Respondent(s) Mr. G.C. Srivastava, Adv. Ms. Preeti Bhardwaj, Adv. Mr. Aditya Parda, Adv. Mr. Shiv Kumar Suri,Adv. UPON hearing counsel Court made following ORDER Heard learned counsel for parties. Learned counsel for Revenue submits that question involved in present special leave petition is in respect of retrospectivity of Section 234D of Income Tax Act, 1961 (for short, 'Act') and, therefore, decision of Bombay High Court in Director of Income Tax (International Taxation)-I Vs. M/s Delta Air Lines Inc. has no application and High Court erred in dismissing appeal preferred by Revenue while keeping question of retrospectivity of Section 234D open. Learned counsel for assessee places reliance on Explanation (2) inserted in Section 234D of Act by Finance Act, 2012 with effect from 01.06.2003. Explanation (2) which has been inserted in Section 234D of Act reads as under :- "Explanation 2. - For removal of doubts, it is hereby declared that provisions of this section shall also apply to assessment year commencing before 1st day of June, 2003 if proceedings in respect of such assessment year is completed after said date." High Court was concerned with appeal relating to assessment year 1998-99. It is admitted case that assessment of that year was completed prior to 01.06.2003. Having regard to legal position which has been clarified by Parliament by insertion of Explanation (2) in Section 234D of Act, in present case, retrospectivity of Section 234D does not arise. Having regard to above position, view of High Court in relying upon decision of Bombay High Court in M/s Delta Air Lines Inc. (supra) cannot be said to be erroneous. Special Leave Petition is dismissed. |(Rajesh Dham) | |(Renu Diwan) | |Court Master | |Court Master | Commissioner of Income-tax-I v. M/s. Reliance Energy Ltd
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