Article
Benami law and retrospectivity- Analysis of Rajasthan High Court decision in Niharika Jain v. Union of India
By Sanmati Raonka
Benami Transactions (Prohibition) Act, 1988 after the amendment in 2016 also provides for confiscation of benami properties besides criminalizing benami transactions. The Rajasthan High Court recently deliberated upon the question as to whether the consequences of the Amendment Act were retrospective in nature. The Court while considering plethora of judgments in accordance with the principle of ‘fairness’ and the maxim lexprospicit non respicit, which means that the law looks forward not backward, held that it is a settled law that a substantive provision unless specifically made retrospective or otherwise intended by the parliament should always be held to be prospective. According to the author, this decision serves as a comprehensive judicial referencer on the benami law, lucidly explaining the law and rulings on the subject matter. Taking note of the reasons for ‘amending’ rather than re-enacting, as explained by the Ministry of Finance to the Parliamentary Standing Committee, the article states that despite the intent of the Government, the Court has held otherwise…
Finance Bill, 2020 – Highlights
- Abolition of Dividend Distribution Tax
- Withholding obligations of e-commerce operators
- Tax collection at source on certain purchases
- Incentives to startups
- International taxation – Extension of APA to profit attribution, deferral of SEP
- Relaxation in respect of TDS on payment for technical services
- Incentives to affordable housing and investment in infrastructure
- Assessment and appeals – Changes
- New scheme of taxation for individuals, cooperative societies and provisions on residential status of individual
- Extension of benefit of lower rate of corporate taxes
- Vivad Se Vishwas Scheme
Notification
- Insertion of new Rule 114AAA making PAN inoperative on non-intimation of Aadhar number Read more
Ratio decidendi
- Unutilized credit under MODVAT Scheme does not qualify for deduction under Section 43B – Supreme Court
- Penalty imposable under Section 271B when audit report under prescribed form not furnished though assessee may have complied with audit under other laws – Kerala High Court
- Shares issued against debt incurred does not result in real credit in the cash book and bank account, therefore Section 68 cannot be invoked – ITAT Kolkata
- Payments made to a non-resident as testing fees cannot be considered as fee for technical services – ITAT Chennai
- Expenses on demerger can be claimed only be the parent entity – ITAT New Delhi
- Compensation received under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 is exempt – Kerala High Court
