Amended rule not retroactive for assessment year - High Court ruling

The High Court of Madras held that the amended rule 5, effective from April 2, 1983, would not apply to the assessment year 1983-84. The law applicable for assessment is the one in force at the beginning of the assessment year, with amendments applying to subsequent years. The ruling favored the Revenue over the assessee.

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The High Court of Madras ruled that the amended rule 5, which came into force on April 2, 1983, would not be applicable to the assessment year 1983-84. The law to be applied for assessment is the law in force on the first day of the assessment year. The amendment would only be applicable for the subsequent assessment year. The judgment favored the Revenue and went against the assessee.

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