TaxTMI 
TaxTMI 
2009 (1) TMI 217
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....im) for the petitioner. ORDER 1. Delay condoned. 2. The question which fell for consideration before the High Court was as to whether the proviso appended to section 113 of the Income-tax Act, 1961, is clarificatory and/or curative in nature. The said provision had come into force with effect from June 1, 2002. It reads as under: "Provided that the tax chargeable under this section sha....
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....position was ambiguous as it was not dear even to the Department as to which year's FA would be applicable. To clear this doubt precisely, the proviso has been inserted in section 113 by which it is indicated that FA of the year in which the search was initiated would apply. Therefore, in our view, the said proviso was clarificatory in nature. In taxation, the legislation of the type indicated by ....
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....cation was needed. The proviso was curative in nature. Hence, the proviso inserted in section 113 merely clarifies that out of the above four dates, the relevant date for applicability of FA would be the year in which the search stood initiated under section 158BC." 5. As the said proviso was introduced with effect from June 1, 2002, i.e., with prospective effect and by reason thereof, tax char....