- (1.) Heard Learned Counsel for the parties. Learned Counsel for the Revenue submits that the question involved in the present special leave petition is in respect of retrospectivity of Section 234D of the IT Act, 1961 (for short, 'Act') and, therefore, the decision of the Bombay High Court in Director of IT (International Taxation) v. Delta Air Lines Inc.,2011 245 CTR(Bom) 16 has no application and the High Court erred in dismissing the appeal preferred by the Revenue while keeping the question of retrospectivity of Section 234D open.
(2.) Learned Counsel for the Assessee places reliance on Expln. 2 inserted in Section 234D of the Act by the Finance Act, 2012 w.e.f. 1st June, 2003.
(3.) Explanation 2 which has been inserted in Section 234D of the Act reads as under: Explanation 2.--For the removal of doubts, it is hereby declared that the provisions of this section shall also apply to an assessment year commencing before the 1st day of June, 2003 if the proceedings in respect of such assessment year is completed after the said date.;