retrospective legislation.pptx

7/30/2019 Retrospective Legislation.pptx

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Jointly Prepared by-

Saurabh ( ID- 495 )

& Praveen Tripathi ( ID- 488)


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Meaning- A double Taxation is levy of tax by twoor more jurisdiction on the same income.

To avoid double taxation countries enter into

DTAA, DTAT. To encourage flow of foreign capital.

To mitigate the hardship caused by dual taxationon the same income.

Indo-Mauritius DTAA


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Article 13- Capital Gain

Article 4- Definition of Resident

Section 90, 90A, Income Tax Act, 1961


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A person cannot be guided by a law which did not exist at the

time when the action occurred. It is fundamentally unfair to

hold a person to be in contravention of the law when that law

did not exist when the alleged contravention occurred.

Rewriting the law, to nullify the decision of court, involves

two causalities;

Respect for Judiciary

Certainty of Law


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Ishikawajima Harima Heavy Industries Ltd. v. Director of

Income Tax, Mumbai (2007) 3 SCC 481

Finance Act 2007 (with effect from June 1, 1976)

Clifford Chance v. DCIT (2009) 318 ITR 237 (Bom)

Finance Act 2010 (with effect from June 1, 1976)

Ashapura Minichem Ltd. v. ADIT (2010) 5 Taxman 57 (Bom)


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Section 2 (14) Definition of capital assetExplanation.For the removal of doubts, it is hereby clarifiedthat property includes and shall be deemed to have always

included any rights in or in relation to an Indian company,

including rights of management or control or any other rights

whatsoever;

Section 9 : Income deemed to accrue or arise in IndiaExplanation 4.For the removal of doubts, it is hereby

clarified that the expression through shall mean and include

and shall be deemed to have always meant and included by

means of,in consequence of orby reason of.
http://c/Users/Praveen/Desktop/FMR/Income-Tax-Act-1961.pdfhttp://c/Users/Praveen/Desktop/FMR/Income-Tax-Act-1961.pdf


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Explanation 5.For the removal of doubts, it is hereby clarified

that an asset or a capital asset being any share or interest in a

company or entity registered or incorporated outside India

shall be deemed to be and shall always be deemed to have

been situated in India, if the share or interest derives, directly

or indirectly, its value substantially from the assets located inIndia.

Section 149 (1) Time limit for notice:

(c) if four years, but not more than sixteen years, have elapsed

from the end of the relevant assessment year unless the income

in relation to any asset (including financial interest in any

entity) located outside India, chargeable to tax, has escaped

assessment.
http://c/Users/Praveen/Desktop/FMR/Income-Tax-Act-1961.pdfhttp://c/Users/Praveen/Desktop/FMR/Income-Tax-Act-1961.pdf


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Reopening of cases.

Non resident who have liquidated their investment will

under scrutiny

Conflict with DTAA and IT Act. (with respect to

amendment in Section 90)


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Considering DTC 2010 for interpreting the IT Act,1961

retrospective legislation.pptx

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