- (1.) THIS IT appeal is directed against the order dt. 11th Oct., 1999 passed in ITA No. 2168/Jp/1994 for the asst. yr. 1989-90. The Tribunal had passed the aforesaid order allowing the appeal in favour of the M/s New Rajasthan Trading Company, Udaipur. THIS order is subject-matter of challenge in this appeal under s. 260A of the IT Act, 1961. While admitting this appeal on 27th Nov., 2000, the Court had framed following questions : "Whether the newly inserted proviso vide the Finance Act, 1991 w.e.f. 1st Oct., 1991 to s. 272A(2) of the Act is applicable to the respondent-assessee whose default relates to asst. yr. 1989-90 requiring the assessee to file returns on or before 30th April, 1989 for the period ending on 31st March, 1989."
(2.) IT is nobody's case that the newly inserted proviso vide the Finance Act, 1991 w.e.f. 1st Oct., 1991 to s. 272A(2) of the Act has been given retrospective effect. In absence of any retrospective effect to such provisions, this newly inserted proviso cannot have any impact with regard to any default relating to the asst. yr. 1989-90 requiring the assessee to file the return on or before 30th April, 1989 for the period ending on 31st March, 1989. No law can have retrospective effect unless it is so provided specifically by the law itself. The Tribunal has proceeded on the basis that the provisions as contained in s. 272A(2) are purely procedural, which is totally incorrect, which has resulted into an incorrect result. Sec. 272A(2) is a charging section and has come into effect only w.e.f. 1st Oct., 1991 and it cannot be said to be procedural by any norms. This appeal is, therefore, allowed. The impugned order under appeal is hereby set aside.;