TaxTMI 
TaxTMI 
Retrospective Amendments and the Doctrine of Vested Rights: A Judicial Perspective
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....re the Settlement Commission u/s 245C of the Income Tax Act, 1961 (the Act). The petitioner had filed the application on 18th March 2021, seeking settlement of its income for the assessment years 2014-15 to 2020-21. However, the Finance Act, 2021, which received the assent of the President on 28th March 2021, introduced retrospective amendments to Section 245C of the Act, prohibiting the filing of....
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.... to be filed until 30th September 2021, but only for those assessees who were eligible to file on 31st January 2021. Discussions and Findings of the Court Vested Right of the Petitioner The Court held that the petitioner had a vested right to have its application considered by the Settlement Commission since it was filed on 18th March 2021, before the Finance Act, 2021 came into force. The retr....
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....nt could only prohibit the act of filing an application after 1st February 2021, but could not undo an act already performed before that date. Analysis and Decision by the Court The Court analyzed various judgments cited by the parties, including Commissioner of Income-Tax, Uttar Pradesh Versus Shah Sadiq And Sons - 1987 (4) TMI 2 - Supreme Court, Howrah Municipal Corpn. & Others Versus Ganges R....
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....t and held that the CBDT notification was invalid to the extent that it imposed an additional condition of eligibility as of 31st January 2021. The Court directed that the petitioner's application be considered and disposed of in accordance with the law. Doctrine or Principle Discussed The judgment primarily discusses the doctrine of vested rights and the principle that retrospective legisla....