1984 (10) TMI 66

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....Smt. K.L. Gangamma, was paid interest of Rs. 12,663 and Rs. 12,915, respectively, in the previous years relevant to the assessment years 1977-78 and 1978-79. It was further found that she had received this interest in her individual capacity, whereas as a partner she was only representative of the estate of late K. Laxmansa. In these circumstances, as in the earlier years, the Tribunal decided tha....

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....years also. But, it is pointed out on behalf of the assessee that section 10 of the Taxation Laws (Amendment) Act, 1984 has introduced Explanation 2 to section 40(b) to state that interest paid by a firm to an individual, otherwise than as a partner in a representative capacity, shall not be taken into account for the purposes of this clause. It was submitted that in view of this amendment, a refe....

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....f any statute. Such Acts are usually held to be retrospective. Maxwell on The Interpretation of Statutes, twelfth edn., p. 224, also states that if a, statute is in its nature a declaratory Act, the argument that it is not to be construed so as to take away previously vested rights is inapplicable. In other words, even though section 10 may come into statute book with effect from 1-4-1985, it will....