I have a doubt regarding the point from when any amendments to the finance act is applicable.
Example, Finance Act makes changes for computation of income from A.Y 2011 onwards, (unless retrospective) its applicable only for incomes earned from FY 2010 onwards.
My question is if there is any other changes... For example regarding the powers of an Income tax authority. Is that applicable for every case pending in 2011 onwards..even if its regarding 3 years back,
18 April 2011
NO, Any provision, including procedural / enabling provisions, take effect prospectively unless specifically stated otherwise. Thanks, Pankaj
Guest
Guest
(Querist)
18 April 2011
Hi prospectively is fine i.e only from that point of time onwards,
But does an amendment regarding such powers of IT authority which is effective after passing the Finance bill can be exercised on cases pending of prior Assessment Years??
or does it apply only to returns filed in that asessment year and thereafter...
18 April 2011
Hi, This is tricky. The procedural Powers can be exercised in respect of proceedings, pending on the date of amendment, even for past years. However, no penal provisions can be invoked for an action, which is made an offence later by any amendment. Trust this should suffice your curiousity. Thanks, Pankaj
19 April 2011
Law amending procedure can be effective from the date from the point amendment is made applicable.
On the other hand, amendment in substanial law is effective from the date it is made effective.
In your example, if computation of income is changed from 01/04/2010, income for the financial year 2010-11 relevant for assessment year 2011-12 should be considered.
The AO can not change computation of income in all pending cases before him.
Moreover, if there is changes in law meant for the purpose of governing the ACt in due course, amendment will be effective in all proceeding from the date it is brought into the Act.
20 April 2011
To Quote "Moreover, if there is changes in law meant for the purpose of governing the ACt in due course, amendment will be effective in all proceeding from the date it is brought into the Act."
"However, no penal provisions can be invoked for an action, which is made an offence later by any amendment."
Thank You experts..
Guest
Guest
(Querist)
20 April 2011
Dear Experts, Since the going is good...let me try my luck further:-)
Thanks in advance.. Actually had posted these questions earlier but they did not elicit a response.. Thanks for your time again...
1.To quote section 119 powers of CBDT If it (Board) considers desirable or expedient to avoid genuine hardship... may by GENERAL or SPECIAL order... How is general and special order different?
2.How are transfer of capital assets taxed in case of a.... Company to llp(and if its permitted)? b.... firm to llp( this does not seem to be covered under section 47.) is there any other provision by chance? ....else professional firms may be taxed on conversion to LLP..
CAclubindia
