Retrospective amendments in assessment appeals led to remand for fresh adjudication and temporary protection against recovery.

Assessment appeals affected by retrospective legislative amendments were remitted for fresh consideration, with liberty to raise all contentions available in law and a direction that earlier observations would not bind the Tribunal or CIT(A). The block assessment order was set aside, the regular assessment appeal was also sent back for disposal on the same footing, and the authorities were required to take the 2002 retrospective amendments into account. Pending rehearing, the Department was restrained from taking coercive recovery action up to the specified date.

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Issues: Whether the block assessment order should be set aside and the pending appeals remitted for fresh consideration in the light of retrospective amendments, with interim protection against recovery.

Analysis: The block assessment order was set aside and the appeal against that order was directed to be heard afresh by the Tribunal, with liberty to raise all contentions available in law and with a direction that the Tribunal would not be influenced by earlier observations. The Tribunal was also required to take into consideration retrospective amendments made in 2002. Similarly, the appeal against the regular assessment order was remitted to the CIT(A) for disposal on the same footing, again taking into account the retrospective amendments. The Department was restrained from taking coercive recovery action up to the specified date.

Conclusion: The assessee obtained setting aside of the block assessment and remand of both matters for fresh adjudication, along with temporary protection against recovery.

Final Conclusion: The dispute was finally disposed of by remitting the assessment appeals for fresh decision and granting limited interim relief to the assessee.

Ratio Decidendi: Where assessment proceedings are affected by retrospective legislative amendments, pending appeals may be remitted for fresh consideration with liberty to urge all legal contentions and with interim protection against coercive recovery.

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