Prospective application of section 115BBE barred higher tax rate for surrendered receipts in the earlier assessment year.

Enhanced tax under section 115BBE applies prospectively from assessment year 2018-19 and cannot be applied to assessment year 2017-18. The surrendered amount, disclosed as professional receipts, was therefore taxable only at the normal rate, and the Revenue's attempt to apply the higher rate failed in favour of the assessee.

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Issues: Whether the amount surrendered during survey for assessment year 2017-18 could be subjected to tax at the enhanced rate under section 115BBE, or only at the rate applicable prior to the amendment.

Analysis: The surrendered sum was disclosed as professional receipts in relation to assessment year 2017-18. The Tribunal followed the view that the enhanced rate of tax under section 115BBE applies prospectively from assessment year 2018-19 and not to earlier years. On that basis, the higher rate invoked by the Revenue could not be applied to the year in question.

Conclusion: The enhanced tax rate under section 115BBE was held inapplicable to assessment year 2017-18, and the amount was directed to be taxed only at the normal rate; the issue was decided in favour of the assessee.

Ratio Decidendi: The enhanced rate of tax under section 115BBE operates prospectively and cannot be applied to assessment years prior to its effective date.

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