Retrospective amendment in assessment law requires a fresh return and bars unilateral reclassification of tenants-in-common status.

A retrospective amendment changing the assessment basis for tenants-in-common required the assessee to be given a fair opportunity to file a fresh return. The revenue could not unilaterally convert the declared status into an association of persons when the original return had been filed under the earlier legal position and the assessee had sought permission to revise it. The change in law affected the correct taxable status, so the assessment orders were set aside and the matter remitted for fresh consideration after allowing a fresh return.

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Issues: Whether, after retrospective deletion of the provision governing assessment of tenants-in-common, the revenue could unilaterally assess the petitioner as an association of persons without permitting a fresh return and whether the assessment orders could be sustained.

Analysis: The statutory scheme treated an association of persons as a taxable unit within the inclusive definition of "person", whereas tenants-in-common were assessed by reference to each co-owner's share. The petitioner had filed the return under the then-existing legal position, and the later retrospective amendment altered the basis of assessment. In such changed circumstances, fairness required that the assessee be given an opportunity to file a fresh return so that the correct status could be determined on the revised legal footing. The assessing authority could not, on its own, convert the declared status of tenants-in-common into an association of persons, especially when the assessee had sought permission to file a fresh return.

Conclusion: The unilateral change of status was not sustainable, and the assessee was entitled to file a fresh return.

Final Conclusion: The assessment orders were set aside and the matter was remitted to the assessing authority for fresh consideration in accordance with law after allowing the assessee to file a fresh return.

Ratio Decidendi: Where a retrospective amendment changes the legal basis of assessment, the assessee must be afforded a fair to file a fresh return, and the taxing authority cannot unilaterally alter the declared status without such opportunity.

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