Amendments Query

New Direct Tax Code 1042 views 5 replies

Guest

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 taxable in AY2011.

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,

or only on returns filed 2011 and thereafter.

Thank you for your time.

I THINK THE QUESTION IS MISUNDERSTOOD...WRITTEN THE SAME DIFFERENTLY

If an amendment (eg. prospectively from AY 2011) is made regarding the any provision other than Tax computation (eg. powers of an Income Tax Authority) is the change effective for returns filed in AY 2011 onwards or on all pending cases also, say returns of 2010 2009 etc

Replies (5)

Tejas

M.Com CA CS CFA (US) Prog. Grad..

354 Points Joined January 2008

Dear Hardik

I am also a student so this is not confirmed. I think the year effective for every amendment in mentioned in the amendment if it is retrospective. If not mentioned it is assumed to be from the that year itself and not retrospective.

priyank

Finance

44 Points Joined March 2010

Ammendments is not applicable from reterospective period.

However, in some specific cases, it is possible.

For Eg. If any amendment is passed under the finance act 2010 (PY 2009-2010)(AY 2010-2011), then such ammendment is applicable for financial year 2010-2011 (Income received or other things during the year 1 Apr 2010 - 31 Mar 2011).

Other views are solicited.

Tejas

M.Com CA CS CFA (US) Prog. Grad..

354 Points Joined January 2008

Priyank

There are amendments in the Finance Act that are retrospective definitely. But not all obviously.

Guest

Dear All,

I think the question was misunderstood.

Amendments can be retrospective also, and each amendment mentions particularly if it is prospective or retrospective.

A retrospective amendment is also applicable with the same effect, unless barred by the period of limitation- 1yr from end of AY, or 4yrs or 6yrs or whatever....because then the AO will not be able to do anything....

Judicial decisions are not under any period of limitation because they are clarificatory in nature..An AO can open any case whenever he wants on the back of a judicial decision...

My question was regarding the effect of an amendment regarding the powers of an income tax authority..

I have reworded and asked my question again...thanks for your time

Guest

In the experts Section CA. Krishna K Neeraj has answered thus:

(Pankaj K Gupta earlier confirmed the same:)

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.