M/s. N.N. Bhagwati, Bombay Vs. Commissioner of Income Tax
EmailAppeal: Civil Appeal No. 4665/1996
Petitioner: M/s. N.N. Bhagwati, Bombay
Respondent: Commissioner of Income Tax
Apeal: Civil Appeal No. 4665/1996
Judges: S.P. BHARUCHA & RUMA PAL, JJ.
Date of Judgment: Jul 20, 2000
Head Note:
PRACTICE AND PROCEDURE
Income Tax Act, 1961
Sections 80-AA, 80-AB – Nature – Provisions held as declaratory – One given retrospective effects – Circular of Board, giving prospective effects to other – Judgment in H.H. Sir Rama Verma (205 ITR 433) – If needs reconsideration. Held that since provisions were declaratory, circular of Board was of no relevance. Hence, there was no ground to reconsider the earlier judgment. Appeal dismissed.(Para 1)
Cases Reffered:
1. H.H. Sir Rama Varma v. Commissioner of Income Tax (JT 1993 (6) SC 183)
JUDGEMENT:
Order
1. We are not impressed by the submission on behalf of the appellant that the judgment of this Court in the case of H.H. Sir Rama Varma v. Commissioner of Income Tax (JT 1993 (6) SC 183), needs reconsideration by a larger Bench. That judgment notes that Sections 80-AA and 80-AB of the Income Tax Act, 1961 were introduced at one and the same point of time and that Section 80-AA was given retrospective operation with effect from 1st April, 1968. It notes that it was held in the case of Distributors (Baroda) P. Ltd. v. Union of India. (155 ITR 120), that Section 80-AA was declaratory of the law as it always had been since 1st April, 1968. On a parity of reasoning, it was held in the judgment in H.H. Sir Rama Varma (supra) that Section 80-AB was also enacted to declare the law as it always stood. Whether, therefore, circulars of the Board have stated that Section 80-AB was prospective is of no relevance and the judgment cannot be reconsidered on that ground.
2. The appeal is covered against the appellant by the judgment in the case of H.H. Sir Rama Varma (supra). The appeal is, therefore, dismissed. No order as to costs.
1. We are not impressed by the submission on behalf of the appellant that the judgment of this Court in the case of H.H. Sir Rama Varma v. Commissioner of Income Tax (JT 1993 (6) SC 183), needs reconsideration by a larger Bench. That judgment notes that Sections 80-AA and 80-AB of the Income Tax Act, 1961 were introduced at one and the same point of time and that Section 80-AA was given retrospective operation with effect from 1st April, 1968. It notes that it was held in the case of Distributors (Baroda) P. Ltd. v. Union of India. (155 ITR 120), that Section 80-AA was declaratory of the law as it always had been since 1st April, 1968. On a parity of reasoning, it was held in the judgment in H.H. Sir Rama Varma (supra) that Section 80-AB was also enacted to declare the law as it always stood. Whether, therefore, circulars of the Board have stated that Section 80-AB was prospective is of no relevance and the judgment cannot be reconsidered on that ground.
2. The appeal is covered against the appellant by the judgment in the case of H.H. Sir Rama Varma (supra). The appeal is, therefore, dismissed. No order as to costs.
