Legal Case Summary

Case Details
Case ID 6eb5e6f9-4d97-4e6a-b19e-1f8df0cf2105
Body View case body.
Case Number D-2741 of 1987
Decision Date Jan 01, 1987
Hearing Date Jan 01, 1987
Decision The court held that the amended provisions of section 275 of the Income-tax Act, 1961, were applicable to the penalty proceedings initiated before the amendment took effect. The court concluded that procedural laws, such as limitation, do not confer vested rights, and thus the amended law governs the case. The penalty imposed was within the new two-year limitation period, making it valid. Therefore, the tribunal's ruling that the penalty was time-barred was incorrect, and the references were answered in favor of the revenue.
Summary In the case at hand, the Patna High Court examined the application of the amended section 275 of the Income-tax Act, 1961, concerning the imposition of penalties for the assessment years 1965-66 and 1966-67. The key issue centered around whether the limitation period for imposing penalties should be calculated under the old or the new provisions post-amendment. The court determined that since procedural laws, including those related to limitation, do not confer substantive rights, the amended law applies. This ruling underscores the importance of understanding procedural changes and their implications on ongoing legal proceedings. The decision clarifies that penalties imposed within the newly established timeframe are valid, emphasizing the retroactive applicability of procedural amendments in taxation law. This case serves as a significant reference point for future cases involving the application of amended laws concerning penalties.
Court Patna High Court
Entities Involved Not available
Judges UDAY SINHA, NAZIR AHMAD
Lawyers B.P. Rajgarhia, S.K. Sharan
Petitioners Not available
Respondents Fair Weather Transport Corporation
Citations 1987 SLD 3047, (1987) 165 ITR 48
Other Citations Addl. CIT v. Watan Mechanical and Turning Works [1977] 107 ITR 743 (AP)(FB), CWT v. Ramdeo Sachdeo [1986] 52 CTR (Pat.) 400, CIT v. Badshah Prasad [1986] 53 CTR (Pat.) 377
Laws Involved Income-tax Act, 1961
Sections 275, 271(1)(a)