Section 65(105)(zzc) amendment required fresh Tribunal review after earlier tax reasoning was displaced.

The Supreme Court of India held that the Tribunal's order, which had proceeded on the earlier view in Great Lakes Institute of Management Ltd., could not stand after insertion of the Explanation in section 65(105)(zzc) of the Finance Act, 1999 with effect from 1 July 2003. The impugned judgment was set aside and the matter remanded to the Tribunal for fresh consideration in light of the amendment. No final adjudication was made on the merits of the tax liability.

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Issues: Whether the Tribunal's order, which had proceeded on the basis of the earlier view in Great Lakes Institute of Management Ltd., could be sustained in view of the insertion of the Explanation in section 65(105)(zzc) of the Finance Act, 1999 with effect from 1 July 2003.

Outcome: The impugned judgment was set aside and the matter was remanded to the Tribunal for fresh consideration in the light of the said amendment. No final adjudication on the merits of the tax liability was made.

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