High Court directs CBDT to reconsider petitioner's Section 10(46) application retrospectively.

The High Court directed the Central Board of Direct Taxes (CBDT) to reconsider a petitioner's application for Notification under Section 10(46) of the Income Tax Act, 1961, retrospectively from 01.06.2011. The Court emphasized the similarity in income nature over the years and instructed the CBDT to make a prompt decision within eight weeks from receiving the order's certified copy.

---

---

Issues:
1. Application for Notification under Section 10(46) of the Income Tax Act, 1961 with retrospective effect.
2. Consideration of the application by the Central Board of Direct Taxes (CBDT).
3. Legal validity of restricting the Notification prospectively.
4. Direction to reconsider the application retrospectively.

Analysis:

Issue 1: The petitioner, claiming to be a Board constituted under the Mysore Palace Acquisition Act, sought Notification under Section 10(46) of the Income Tax Act, 1961, with retrospective effect from 01.06.2011. The petitioner argued that the nature of income received remained consistent for earlier periods, justifying the retrospective application.

Issue 2: The Central Board of Direct Taxes (CBDT) issued a Notification dated 09.04.2019, restricting the exemption to specific assessment years, despite the petitioner's request for retrospective effect. The petitioner urged for reconsideration of their application to extend the benefit of the Notification retrospectively.

Issue 3: The revenue contended that the Notification was issued prospectively after considering the petitioner's request, implying no further consideration was necessary. However, the petitioner insisted on the retrospective extension of the Notification, emphasizing the similarity in the nature of income over the years.

Issue 4: The High Court, after hearing arguments from both sides, held that there was no legal impediment for the CBDT to reconsider the application dated 30.11.2018 and extend the benefit of the Notification dated 09.04.2019 retrospectively from 01.06.2011. Consequently, the Court directed the CBDT to reevaluate the application and make a decision promptly, not exceeding eight weeks from the date of receiving the order's certified copy.

In conclusion, the High Court disposed of the writ petition by instructing the CBDT to review the petitioner's application for Notification under Section 10(46) of the Income Tax Act, 1961, with retrospective effect, emphasizing the need for a prompt decision within the specified timeframe.

---