Applicability of Explanation 2 to Section 132B of the I.T. Act, 1961- reg.

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....t 1961, provides for adjustment of seized assets/ requisitioned assets against the amount of any existing liability under the Income Tax Act, 1961, (the Act), the Wealth-tax Act, 1957, the Expenditure-tax Act, 1987, the Gift-tax Act, 1958 and the Interest-tax Act, 1974, and the amount of the liability determined on completion of the assessment under section 153A of the Act and the assessment of th....

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....nce tax liability of the assessee. Subsequently, Explanation 2 to Section 132B of the Act was inserted by the Finance Act, 2013 w.e.f. 01-06-2013, clarifying that "existing liability" does not include advance tax payable in accordance with the provisions of Part C of Chapter XVII of the Act. However, the dispute continued on the issue as to whether the amendment was clarificatory in natu....

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....the Hon'ble Punjab & Haryana High Court in the case of Spaze Towers Pvt. Ltd. - NJRS 2016-LL-1117-5, ITA No. 40 of 2015 = 2016 (11) TMI 1401 - PUNJAB AND HARYANA HIGH COURT dated 17.11.2016, wherein it was held that the Explanation 2 to Section 132B of the Act is prospective in nature. 4. Accordingly, it has now been settled that insertion of Explanation 2 to Section 132B of the Act shall have a ....