1983 (11) TMI 89

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....x Act, 1961 ('the Act') on the gross value of the assets without deducting liabilities. The ITO had allowed the claim in these two years and completed the assessments accordingly. Subsequently, the ITO rectified the assessments under section 154 of the Act and allowed relief on the net capital employed in the business and not on the gross capital as allowed in the original assessments. The assesse....

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....that the Supreme Court has admitted the writ petitions challenging the validity of the amendment. He further urged that the very applicability of the amendment of section 80J with retrospective effect to a completed assessment is a debatable one and so, the provisions of section 154 cannot be invoked. He relied on a decision in J.M. Shah v. J.M. Bhatia, AAC [1974] 94 ITR 519 (Bom.). The learned de....

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....ended provision of section 80J with retrospective effect was on the statute book. The Commissioner (Appeals) had the power to apply the amended provisions. In our view, he has rightly applied the said provision. In view of the said amendment of section 80J, the order under section 154 made by the ITO is to be upheld. If any amendment comes in with retrospective effect pending an appeal, it must be....