INCOME TAX ACT, 1961

--Search and seizure--Block assessment Surcharge--Assessee argued that proviso to section 113 was inserted with effect from 1-6-2002 does not have retrospective effect, therefore, surcharge should not be levied upon him Supreme Court held that said provision is curative in nature and merely clarifies that surcharge would be imposed according to Finance Act of the year in which search was initiated. The Larger Bench of Supreme Court issued direction to place the above matter before it. The matter was still pending. Held: In event of Larger bench holding that surcharge was not leviable, assessee would not be subjected to surcharge and, therefore, matter was to be remanded with direction to await decision of Larger Bench of Supreme Court.

Income Tax Act, 1961, Section 113

IN THE KARNATAKA HIGH COURT

N. KUMAR & RAVI MALIMATH, JJ.

CIT v. K.C. Puttaswamy Gowda

IT Appeal No. 973 of 2006