Ita/539/2007 Of The Commissioner Of Income Tax v. Sri S S Gopalakrishnan

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE O0 DAY OF OCTOBER, 2012. PRESENT THE HON’BLE MR.JUSTICE K. SREEDHAR RAO| AND THE HON’BLE MR.JUSTISCE B.V.PINTO INCOME-TAX APPEAL NO.539/2007| BBRTWER 1.THR COMMISSIONER OF INCOME-TAXCR BUILDINGQUEENS ROADBANGALORECR BUILDINGQUEENS ROADBANGALORE 2.THER ASSISTANT COMMISSIONBR OF INCOMB TAXCIRCLE 14(1)|CR BUILDINGQUEENS ROADCIRCLE 14(1)|CR BUILDINGQUEENS ROAD BANGALORE _. APPKBLLANTS (BY SRI. K V ARAVIND, ADV.) AND SRI S S GOPALAKRISHNAN NO.69, I PHASE| ADARSHA PALM MBADOWSWHITBKRFIBL BANGALORE —. RBSPONDBENT (BY SRI. A SHANKAR, ADV.) THIS ITA IS FILED U/S.260-A OF I.T.ACT, 1961ARISING OUT OF ORDER DATBD 29-03-2007 PASSED IN] ITA NO.3803/BANG/2005 FOR THE ASSESSMENT PERIOD2000-01, PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OFLAW STATED THEREIN, Il ALLOW THE APPEAL AND SET ASIDE THE ORDER.PASSED BY ITAT BANGALORE, IN ITA NO.303/BANG/2005DATED 29-03-2007 CONFIRMING THERE ORDER OF THAPPBLLATK COMMISSIONBR & CONFIRM THR ORDER|PASSED BY THE AssT.COMMISSIONER OF INCOME TAX,|CIRCLE-14(1), BANGALORE, IN THE INTEREST OF)JUSTICE AND EQUITY. THIS [TA COMING ON FOR FINAL HEARING THIS.DAY,SREEDHAR RAO J., DELIVERED THE FOLLOWING:- JU DBGMENT The amendment to Section 17 (3) of the IncomeTax Act is a prospective effect from 1[82]April, 2003, andis an analogous provision in Section 28(va) of _IncomeTax Act, 1961 was also introduced with effect from 1[82]April, 2003. The said provision is held to be inprospective effect. In the instant case, the assessee hadreceived a lump sum payment as non-competition feeaiter his retirement. The said payment is made prior tothe incorporation of Section 17(3) of I.T.Act with effectfrom l[82]April, 2003. As on that date, the said amount. was not taxable. It is only after the amendment, thesaid amount has become taxable. In that view, thequestion of law formulated in the memorandum ofappeal is answered against the Revenue. Accordingly, the appeal is dismissed. Nv] Sd/-|JUDGESd/-|JUDGE