Principal Commissioner Of Income Tax - 7 v. M/S R. System International Ltd.

$~6 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 745/2016 PRINCIPAL COMMISSIONER OF INCOME TAX - 7..... Appellant Through : Sh. Dileep Shivpuri, Sr. Standing Counsel with Sh. Sanjay Kumar, Jr. Standing Counsel and Sh. Vikrant. A. Maheshwari, Advocate.

versus M/S. R. SYSTEM INTERNATIONAL LTD.

..... Respondent Through : Sh. Arta Trana Panda, Advocate.

CORAM:

HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE NAJMI WAZIRI

O R D E R

% 04.01.2017 The question of law urged by the Revenue in this appeal under Section 260A of the Income Tax Act, 1961 is:

"Whether reassessment could be carried out in terms of proviso to Section 147 of the Income Tax Act, 1961, after the four year period solely on the basis of a retrospective legislative change"

In the present case, Clause (i) to Explanation 1 was added to Section 115JB by an amendment brought into force retrospectively from 01.04.2001.

This formed the basis for the reassessment notice which has been held improper by the Income Tax Appellate Tribunal (ITAT). This Court notices that the ITAT had relied upon a previous judgment

of this Court in CIT v. SIL Investments Limited 2011 339 ITR 166 where too the question was identical, i.e. whether a retrospective amendment to Section 80HHC could justify reassessment notice. The Court unequivocally held that mere change in law without anything more did not justify such course of action.

In the circumstances, applying the ratio in CIT v. SIL Investments Ltd. (supra), this Court holds that no substantial question of law arises. The appeal is accordingly dismissed. S. RAVINDRA BHAT, J NAJMI WAZIRI, J JANUARY 04, 2017 'ajk'