Object of retrospective amendment

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What is the reason / object  behind "Retrospective Amendment in Income Tax Act,1961" ?

Replies (5)

Dear Akshay,

Retro itself meangs Back dated i.e amendment will be Effective from back date.

regards

BHAVIN SHETH

Agree with Bhavin.

Retrospective amendments in any sections are applicable from the previous year prior to previous year to which finance act is applicable.

Generally retrospective amendments are paased to cover certain type of transactions under purview of Income Tax. These may be passed either by inserting new section, amending existing section or inserting explanation. Reason for retrospective amendemend is mentioned in memorandum to finance bill in which the said amendment is passed.

Regards,

Chirag M. Haraniya

 

 

Thanks both of You...

as per the section 44AA we have to maintain the books for 6 following A.Y. and in normal course of assessment procedure  An AO can also call for assessment for last 6 A.Y.

then why the dept made the amendment retrospectively w.e.f. 1961,

why they do not made amendment from last 6 A.Y.??

 

Dear Akshay,

Good question but As per my knowledge and understanding,

what  about cases which are still pending since 1970's or 80's,

if they don't Amend retrospectively, rules want be applicable to all those cases thus retrospective amendment,

I hope u will understand what i am trying to make you understand

regards

BHAVIN SHETH

Rule 6F defines for books to be kept for 6 ay that rule was not retrospectively ammendmended. It was amended by IT (first amdnt) Rules 2002. Can you please specify which section was amended retrospectively so that i can try to find out logic behind said amendment. When amendment is made from w.e.f. 1961 or the date on which section was initially introduced it means that the intention behind section was same from the date on which it was introduced however due to controversial decisions and non clarity of section; amendments is made retrospectively. The recent amendment in section 9 is best example of it.( Vodafone case) Regards, Chirag Haraniya


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