Retrospective amendment of the I-T Act, 1961: CBDT to look into the pending cases
The Finance Minister Arun Jaitley today stated that all the fresh cases arising out of the 2012 amendment of I-T Act would be looked into by a high level CBDT (Central Board of Direct Taxes) committee. He also mentioned that retrospective amendments to tax laws will be undertaken with extreme caution and the investors need not worry about their returns on investments.
However, the existing tax disputes, which had arisen out of Retrospective Amendment to the Income tax Act, 1961, and are pending in the Courts. Jaitley wants them to be resolved soon and expects them to reach their logical conclusion.
Jaitley also mentioned that the sovereign right of the government to undertake retrospective legislation in unquestionable.He emphasised on the fact that this power has to be exercised through extreme caution and judiciousness. The impact of each such measure on the economy and the overall investment climate needs to be gauged first before taking any decision.
The government is against the idea of bringing any change retrospectively which creates a fresh liability. The I-T Act, 1961 had some flaws and some retrospective amendments have been included in the Finance Bill of 2012. Due to these ambiguities and amendments, a few cases have come up in various courts and legal forums. The present government will provide a clear directive to the judiciary so that they can resolve the impending cases quickly.
Source- The Financial Express
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