N.N. Bhagwati vs Commissioner of Income Tax

We are not impressed by the submission on behalf of the appellant that the judgment of this court in the case of H.H. Sir Rama Varma Vs. Commissioner of Income Tax, Kerala, , needs reconsideration by a larger Bench. That judgment notes that Sections 80A and 80AB of the income tax Act, 1961, were introduced at one and the same point of time and that Section 80A was given retrospective operation with effect from April 1, 1968. It notes that it was held in the case of Distributors (Baroda) Pvt. Ltd. Vs. Union of India (UOI) and Others, , that Section 80A was declaratory of the law as it always had been since April 1, 1968. On a parity of reasoning, it was held in the judgment in H.H. Sir Rama Varma Vs. Commissioner of Income Tax, Kerala, that Section 80AB was also enacted to declare the law as it always stood. Whether, therefore, the circulars of the Board have staled that Section 80AB was prospective is of no relevance and the judgment cannot be reconsidered on that ground.

The appeal is covered against the appellant by the judgment in the case of H.H. Sir Rama Varma Vs. Commissioner of Income Tax, Kerala, . The appeal is, therefore, dismissed. No order as to costs.